WHO urges stronger taxes on sugary drinks and alcohol to curb global health crisis

• What happened: The World Health Organization (WHO) has called on governments to significantly increase taxes on sugary drinks and alcoholic beverages.

• Why it matters now: Low taxes are keeping these harmful products cheap, driving obesity, diabetes, heart disease, and other preventable conditions worldwide.

• What changes for people: Higher prices could reduce consumption, encourage healthier choices, and generate funds for healthcare systems.

• Who is affected: Consumers of sugary drinks and alcohol, governments, health systems, and the food and beverage industry.

The World Health Organization has warned that sugary drinks and alcoholic beverages are becoming increasingly affordable due to weak taxation, contributing to rising obesity, diabetes, heart disease, and cancers, particularly among children and young adults. The UN health agency is now urging governments to reform and strengthen taxes on these products to protect public health and fund healthcare initiatives.

Tax gaps and health risks
According to WHO, at least 116 countries tax sugary drinks, mainly sodas, but many high-sugar beverages such as 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas escape taxation. While 97% of countries tax energy drinks, the coverage has not improved since 2023.

For alcohol, 167 countries levy taxes, while 12 countries ban it entirely. Despite this, alcoholic drinks have generally remained affordable since 2022 as taxes fail to match inflation and income growth. Notably, wine remains untaxed in 25 countries, mostly in Europe, despite clear health risks.

Global impact of weak taxation
WHO highlights that while the combined global market for sugary drinks and alcohol generates billions in profit, governments capture only a small share through health taxes. The public, meanwhile, bears the long-term health and economic consequences.

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

The 3 by 35 initiative
As part of its 3 by 35 initiative, WHO aims to increase the real prices of tobacco, alcohol, and sugary drinks by 2035. The goal is to make these products less affordable over time, reducing preventable noncommunicable diseases and injuries, while supporting sustainable health funding.

Why it matters for you
Consumers may soon see higher prices for sodas, sweetened beverages, and alcoholic drinks. These changes are intended to encourage healthier choices and reduce long-term healthcare costs. For governments, the policy offers a way to address preventable illnesses while financing essential health services.