WHO urges higher taxes on sugary drinks and alcohol as affordability rises in dozens of countries
Sugary drinks and alcohol are not being taxed at levels that curb demand and protect public health, the World Health Organization said in two new reports, warning that the products remain broadly affordable and are fueling chronic disease. The agency renewed its call for stronger “health taxes” on alcohol and sugar-sweetened beverages to reduce consumption and bolster strained government budgets.
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The WHO said sugary drinks became more affordable in 62 countries in 2024 compared with 2022, underscoring a trend it argues runs counter to efforts to prevent noncommunicable diseases such as diabetes. Affordability, the agency says, is a critical driver of consumption, especially among young people and lower-income households.
“Health taxes are not a silver bullet, and they’re not simple. They can be politically unpopular and they attract opposition from powerful industries with deep pockets and a lot to lose, but many countries have shown that when they’re done right, they’re a powerful tool for health,” WHO Director-General Tedros Adhanom Ghebreyesus said.
The WHO’s position is rooted in a straightforward proposition: higher, well-designed excise taxes raise retail prices and discourage harmful use, while generating predictable revenue for cash-strapped health systems. The agency notes this dual benefit is particularly salient as development aid declines and public debt mounts, limiting fiscal space for prevention and care.
To accelerate adoption, the WHO last year launched its “3 by 35” initiative, a coordinated push for countries to raise the prices of sugary drinks, alcohol and tobacco by 50% over a decade through targeted taxation. Based on outcomes from countries that have implemented health taxes, including Colombia and South Africa, the agency estimates the initiative could mobilize around €850 billion by 2035. The WHO says those proceeds could be channeled into health programs, disease prevention and broader social priorities.
While the agency emphasizes that taxes should be part of comprehensive strategies, it argues they are among the most immediate levers governments can pull to influence behavior. For sugar-sweetened beverages, taxes aim to nudge consumers away from high-calorie, low-nutrient products linked to obesity and diabetes. For alcohol, excise taxes are designed to curb heavy drinking and related harms, from liver disease to injuries and violence.
The reports also acknowledge the political and practical hurdles. Industry lobbying and concerns about inflation, cross-border shopping or impacts on small businesses can stall or dilute reform. The WHO counters that clear public-health objectives, simple tax structures, automatic indexation to inflation and earmarking revenue for health or social services can enhance effectiveness and public support.
Even with uneven adoption, the agency points to a growing body of evidence that higher prices reduce consumption of unhealthy products, especially among frequent and price-sensitive consumers. It argues that inaction carries measurable costs, including rising rates of preventable disease and long-term budget pressures from treating chronic conditions that health systems struggle to afford.
The WHO’s message is blunt: without stronger price signals, sugary drinks and alcohol will stay within easy reach, and the burden of noncommunicable disease will continue to climb. For governments wrestling with limited fiscal options, the agency frames health taxes as a pragmatic tool—one that can deliver both immediate revenue and long-term gains in population health when designed and implemented well.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
