WHO says sugary drinks, alcohol getting cheaper, should be taxed more

GENEVA, Switzerland — The World Health Organization issued a compelling call to action on Tuesday, urging nations worldwide to implement significant tax increases on sugary beverages and alcoholic products. This strategic move aims to curb consumption patterns linked to escalating global health crises while generating crucial funding for overburdened healthcare systems.

The UN health agency presented comprehensive data revealing that persistently low taxation structures have inadvertently made these harmful products increasingly affordable relative to other goods. This pricing dynamic, according to WHO experts, actively contributes to the rising prevalence of obesity, diabetes, cardiovascular diseases, and various cancers across populations.

WHO Director-General Tedros Adhanom Ghebreyesus emphasized the transformative potential of health-focused taxation, stating, “Fiscal policies represent among the most powerful instruments available to governments for promoting population health and preventing disease. By strategically increasing levies on tobacco, sugar-sweetened beverages, and alcohol, nations can simultaneously reduce harmful consumption and secure essential resources for critical health services.”

The organization released parallel global reports examining current taxation frameworks for both alcohol and sugar-sweetened beverages. The findings revealed that while 116 countries currently impose some form of tax on sugary drinks, numerous high-sugar products—including fruit juices, sweetened milk beverages, and ready-to-drink coffee and tea—frequently escape taxation entirely.

Regarding alcoholic beverages, the analysis demonstrated concerning trends: beer became more affordable in 56 countries between 2022 and 2024, while wine received excise tax exemptions in at least 25 nations, predominantly within European markets.

Dr. Jeremy Farrar, WHO Assistant Director-General for Health Promotion, Disease Prevention and Care, drew parallels with successful tobacco taxation models: “The evidence regarding tobacco taxation’s effectiveness in reducing consumption is unequivocal. We must apply the same principled approach to sugary beverages—using fiscal policy as a behavioral intervention while strengthening prevention capabilities, particularly in nations grappling with the rapid rise of non-communicable diseases.”

The WHO initiative forms part of its broader “3 by 35” campaign, which seeks to substantially increase prices for tobacco, alcohol, and sugary drinks by 2035 through strategic taxation redesign. The agency acknowledges implementation challenges, noting that such measures often face strong opposition from well-funded industry groups with significant financial interests at stake.

Despite political hurdles, the WHO points to successful implementations in the Philippines, Britain, and Lithuania as evidence that well-designed health taxes can achieve both public health improvements and sustainable healthcare financing when implemented effectively.