New WHO reports find sugary drinks and alcohol have become more affordable as weak taxes fail to curb consumption or health harms.
The World Health Organization is urging governments to significantly increase taxes on sugary drinks and alcoholic beverages after new analyses showed these products are becoming more affordable in many countries, driving preventable disease and adding pressure to health systems.
Two global reports released on Tuesday assess how countries tax sugar-sweetened beverages (SSBs) and alcohol, and conclude that while most governments now levy some form of excise tax, rates are generally too low, poorly designed and rarely adjusted for inflation. As a result, consumption remains high, especially among young people, and noncommunicable diseases linked to diet and alcohol continue to rise.
“Sugary drinks and alcoholic beverages are getting cheaper, fueling obesity, diabetes, heart disease, cancers and injuries,” WHO said in its announcement. “Health taxes are one of the strongest tools we have for promoting health and preventing disease,” added Director-General Dr Tedros Adhanom Ghebreyesus.
The first report focuses on sugary drinks and finds that at least 116 countries now tax at least one category of SSB 9789240118942-eng. However, the median excise tax on a standard 330ml soda amounts to just 2.4% of the retail price 9789240118942-eng — far below the level typically required to influence purchasing behaviour or encourage companies to reformulate products with lower sugar content.
Coverage is also uneven. While most countries tax sodas and energy drinks, many do not tax sweetened teas, fruit juices or sweetened milk drinks, which WHO notes are important sources of free sugar intake. Young people are especially exposed, with sugary drinks widely available in schools, supermarkets and convenience stores in both high-income and emerging economies.
WHO argues that stronger excise design — including regular adjustment for inflation and using sugar-content-based taxes — would be more effective and could generate revenue for health systems.
The second report evaluates alcohol taxes and finds 167 countries levy excise taxes on alcoholic beverages, while 12 countries ban alcohol sales entirely 9789240118928-eng. Yet alcohol remains inexpensive in many markets because tax rates have not kept pace with rising incomes and prices. Wine remains untaxed in at least 25 countries, mostly in Europe, despite alcohol’s well-documented health risks 9789240118928-eng.
Globally, excise taxes account for a median of 14% of the retail price of beer and 22.5% for spirits, levels WHO describes as insufficient to significantly reduce consumption or alcohol-related harm.
“More affordable alcohol drives violence, injuries and disease,” said Dr Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention.
Alcohol contributes to more than 2.6 million deaths annually and is associated with noncommunicable diseases, mental health conditions and injuries 9789240118928-eng. WHO also notes that alcohol-related harm disproportionately affects lower-income households, while health systems bear the downstream costs.
Fiscal and Health Opportunity
Both reports highlight the gap between formal adoption of taxes and their real-world effectiveness. Without regular inflation adjustments, even well-designed taxes lose value quickly. WHO points out that most countries lack automatic mechanisms to update rates, allowing sugary drinks and alcohol to become steadily more affordable relative to income.
The agency is calling for governments to incorporate stronger fiscal measures as part of its new “3 by 35” initiative, which aims to make tobacco, alcohol and sugary drinks less affordable by 2035.
Public support for higher health taxes appears stronger than policymakers often assume. WHO cited a 2022 Gallup poll showing that majorities in surveyed countries supported higher taxes on both sugary drinks and alcohol. While the organization stopped short of recommending specific rates, it emphasized that excise taxes remain one of the most cost-effective levers for reducing noncommunicable disease and alleviating budget pressures on health systems.