Two new studies released by the Pan American Health Organization (PAHO) have delivered a stark warning: current excise taxes on alcohol and sugar-sweetened beverages across the Americas are far too low to meaningfully reduce consumption and prevent the spread of chronic non-communicable diseases (NCDs), even as the region registers some of the highest per-capita consumption rates of these products globally.
The PAHO analysis finds that across the region, average tax burdens on common alcoholic beverages fall well below global benchmarks. Beer carries an average tax rate of just 25.5 percent of retail price, compared to a global average of 29.4 percent. For distilled spirits, the regional average tax rate sits at 31.5 percent, while the global average reaches 38.7 percent. For sugar-sweetened beverages, the average regional tax amounts to only 17.1 percent of retail price, slightly below the global average of 17.8 percent. To compound this issue, one-third of all countries and territories in the Americas impose no special tax on sugary drinks at all.
This policy gap comes at a particularly worrying time for public health in the region, especially across Latin America and the Caribbean, where consumption of both sugary beverages and alcohol already outpaces most of the world. On average, adults in the region consume 7.8 servings of sugary drinks per week, nearly three times the global average of 2.7 servings.
High, sustained consumption of these products is directly linked to a sharp rise in severe, life-altering chronic health conditions across the Americas. Data shows 67.5 percent of adults in the region are currently overweight or living with obesity, and elevated consumption of sugary drinks and alcohol also drives higher rates of type 2 diabetes, cardiovascular disease, multiple forms of cancer, liver disease, and other chronic NCDs. Excessive alcohol use is additionally associated with higher rates of accidental injuries and interpersonal violence in communities across the region.
Despite the widespread under-implementation of effective health taxes, the reports also highlight encouraging progress across a small but growing number of regional states. Barbados has introduced new targeted taxes on unhealthy products, Colombia recently enacted reforms to raise existing health tax rates, and Dominica has increased excise duties across tobacco, alcohol, and sugar-sweetened beverages. These early actions, PAHO notes, demonstrate that governments in the region are already taking steps to better protect public health for their populations.
PAHO emphasizes that well-designed health taxes deliver two core public benefits: they reduce consumer demand for harmful products by raising prices, and they generate dedicated public revenue that can be reinvested into strengthening public health systems and expanding social support programs. Research also shows that effective taxation can delay the onset of alcohol use among adolescents and cut overall consumption of sugary drinks across all age groups.
Still, significant barriers remain for most countries in the region. Many keep tax rates artificially low, limit the scope of products covered by existing taxes, or fail to update rates regularly to account for inflation that erodes their impact over time. In addition, many common high-sugar products such as sweetened dairy drinks and commercial fruit juices are often excluded from taxation entirely, creating a loophole that pushes consumers to shift their consumption to these unregulated unhealthy alternatives.
Dr. Anselm Hennis, Director of PAHO’s Department of Noncommunicable Diseases, explained the core gap facing regional policymakers: “In many countries, the existing taxes are not designed in line with international best practices, and they are too low to meaningfully change consumption behavior or reduce overall population health risks.”
To address these gaps, PAHO is urging all member states to strengthen their health tax frameworks by implementing more structured tax systems, raising rates to impactful levels, expanding coverage to include all sugary and alcoholic products, and adding regular inflation adjustments to maintain policy effectiveness over time. The organization also notes that strong enforcement and ongoing monitoring are required to maximize the impact of these taxes on reducing harmful consumption.
“PAHO continues to provide technical support to member states as they implement health taxes, a proven intervention to reduce risk factors and protect population health,” Hennis added.
The two reports were first presented in May during a public webinar co-hosted by PAHO and Johns Hopkins University, and they contribute to ongoing global efforts to monitor fiscal policies that align with core public health goals around the world.