Sugary drinks and alcoholic beverages are cheaper than they should be, thanks to low tax rates around the world. This trend is linked to serious health issues like obesity, diabetes, heart disease, and even some cancers, affecting especially young people.
The World Health Organization (WHO) has recently released reports urging governments to raise taxes on these drinks. Their research shows that weak tax systems allow unhealthy products to remain affordable, putting more strain on health systems facing rising costs from preventable diseases.
Dr. Tedros Adhanom Ghebreyesus, WHO’s Director-General, emphasized the importance of health taxes. “Health taxes are one of the strongest tools we have for promoting health,” he said. By taxing products like sugary drinks and alcohol, governments can reduce harmful consumption and generate funds for essential health services.
The market for sugary drinks and alcohol is massive, bringing in billions of dollars. Yet, government taxes on these products remain low, forcing society to shoulder the long-term health and economic costs.
Globally, 116 countries tax sugary drinks, primarily sodas. However, many high-sugar items, like certain fruit juices and sweetened milk drinks, slip through the cracks. While 97% of countries tax energy drinks, the numbers haven’t changed since 2023.
On the alcohol front, 167 countries impose taxes on drinks, and 12 countries have outright bans. Still, many places have seen alcohol become more affordable, as tax increases have lagged behind inflation. For instance, wine remains untaxed in about 25 countries, mainly in Europe, even though excessive consumption poses significant health risks.
Dr. Etienne Krug from the WHO noted that affordable alcohol leads to increased violence, injuries, and diseases. While the industry profits, the health consequences fall on the public, leading to high economic costs.
Statistics reveal some troubling trends:
– Alcohol tax rates are low, with global excise taxes averaging just 14% for beer and 22.5% for spirits.
– Sugary drink taxes are minimal, often accounting for only 2% of the price of a typical soda, and they don’t cover many high-sugar products.
– Few countries adjust tax rates to keep up with inflation, making unhealthy products increasingly affordable over time.
Interestingly, a 2022 Gallup Poll found that most people support higher taxes on sugary drinks and alcohol. The WHO’s new “3 by 35” initiative aims to increase the real prices of tobacco, alcohol, and sugary drinks by 2035, making them less affordable to protect public health.
Raising awareness about these issues is essential, as they have a direct impact on our health and society. By making these products more expensive, we can potentially reduce consumption and encourage healthier choices.
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