The World Health Organization (WHO) has called on governments worldwide to significantly strengthen taxes on sugary drinks and alcoholic beverages, warning that weak tax policies are making harmful products increasingly affordable and placing growing pressure on public health systems.
In two new global reports released on Tuesday, WHO said consistently low tax rates in most countries have contributed to rising consumption of sugary drinks and alcohol, fueling obesity, diabetes, heart disease, cancers, violence and injuries—particularly among children and young adults.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said WHO Director-General, Dr Tedros Adhanom Ghebreyesus. “By increasing taxes on products like tobacco, sugary drinks and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
The reports note that while the global market for sugary drinks and alcoholic beverages generates billions of dollars in profits, governments capture only a small fraction of this value through health-related taxes. As a result, societies are left to bear the long-term health and economic costs of preventable noncommunicable diseases and injuries.
According to WHO, at least 116 countries impose taxes on sugary drinks, largely targeting carbonated sodas. However, many other high-sugar products—including 100% fruit juices, sweetened milk drinks and ready-to-drink coffees and teas—remain untaxed. Although 97 per cent of countries tax energy drinks, this figure has not changed since the last global assessment in 2023.
A separate WHO analysis shows that at least 167 countries tax alcoholic beverages, while 12 have banned alcohol entirely. Despite this, alcohol has become more affordable or remained unchanged in price in most countries since 2022, as tax rates fail to keep pace with inflation and income growth. Wine remains untaxed in at least 25 countries, mostly in Europe, despite established health risks.
“More affordable alcohol drives violence, injuries and disease,” said Dr Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention. “While industry profits, the public often carries the health consequences and society bears the economic costs.”
Regionally, WHO found that excise tax shares on alcohol remain low, with median rates of 14 per cent for beer and 22.5 per cent for spirits. Sugary drink taxes are also weak and poorly targeted, accounting for a median of just about 2 per cent of the retail price of a typical sugary soda and often applying to only a limited range of beverages. Few countries adjust these taxes for inflation, allowing harmful products to become steadily more affordable over time.
These trends persist despite public support for stronger measures. A 2022 Gallup poll cited by WHO found that a majority of respondents favoured higher taxes on alcohol and sugary beverages.
WHO is now urging countries to raise and redesign health taxes under its “3 by 35” initiative, which aims to increase the real prices of tobacco, alcohol and sugary drinks by 2035, making them less affordable and helping to protect population health.
