WHO Urges Governments to Raise Taxes as Sugary Drinks and Alcohol Become Cheaper

“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said Dr Tedros Adhanom Ghebreyesus, WHO Director-General.

 

Sugary drinks and alcoholic beverages are becoming more affordable across much of the world, driven by persistently low and poorly designed taxes, according to two new global reports released today by the World Health Organization (WHO).

WHO warns that weak taxation is fuelling rising rates of obesity, diabetes, heart disease, cancer and injuries, particularly among children and young adults, while leaving health systems to absorb the escalating costs of preventable illness.

“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said Dr Tedros Adhanom Ghebreyesus, WHO Director-General. “By increasing taxes on products like tobacco, sugary drinks and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”

Harmful Products, Low Taxes

The reports show that while sugary drinks and alcohol generate billions of dollars in global profits, governments capture only a small fraction of this value through health-motivated taxes. The result: corporations profit, while societies shoulder the long-term health and economic burden.

At least 116 countries now tax sugary drinks, most commonly sodas. However, many high-sugar products remain untaxed, including:

• 100% fruit juices

• Sweetened milk drinks

• Ready-to-drink coffees and teas

Although 97% of countries tax energy drinks, this figure has not improved since 2023, highlighting stalled policy progress.

Alcohol Growing More Affordable

A separate WHO analysis found that 167 countries tax alcoholic beverages, while 12 ban alcohol outright. Despite this, alcohol has become more affordable or remained unchanged in price in most countries since 2022, largely because taxes have failed to keep pace with inflation and income growth.

Wine remains untaxed in at least 25 countries, mainly in Europe, despite well-documented 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 pays with their health—and society bears the economic costs.”

Global Tax Gaps Exposed

WHO found that across regions:

• Alcohol tax shares remain low, with median excise shares of 14% for beer and 22.5% for spirits

• Sugary drink taxes are weak and poorly targeted, accounting for only about 2% of the retail price of a typical sugary soda

• Few countries adjust taxes for inflation, allowing harmful products to become steadily more affordable over time

These trends persist despite strong public backing. A 2022 Gallup poll found that a majority of people support higher taxes on alcohol and sugary drinks.

Call to Action: WHO’s “3 by 35” Initiative

WHO is calling on governments to raise and redesign health taxes as part of its new “3 by 35” initiative, which aims to increase the real prices of tobacco, alcohol and sugary drinks by 2035, making them less affordable and reducing consumption over time.

WHO says well-designed health taxes can:

• Save lives by reducing consumption

• Generate sustainable revenue for health systems

• Ease pressure on overstretched public services

• Protect future generations from preventable disease

“Governments have a clear opportunity to act,” WHO said. “Stronger health taxes are not just good economics—they are essential public health policy.”