The World Health Organization (WHO) has called upon governments worldwide to raise taxes on alcohol and sugar-sweetened beverages (SSBs) in an effort to improve public health.
After assessing taxation rates, the WHO emphasized on Tuesday that the global tax rate on “unhealthy products” is generally too low. Some European countries even exempt items like wine from taxation.
According to the WHO, alcohol consumption results in 2.6 million deaths annually, while unhealthy diets lead to 8 million deaths. The organization believes that higher taxes could reduce the consumption of these products and encourage companies to produce healthier alternatives.
Rüdiger Krech, the WHO’s health promotion director, stated, “Taxing unhealthy products creates healthier populations. It has a positive ripple effect across society, less disease and debilitation and revenue for governments to provide public services,” said Rüdiger Krech, the WHO’s health promotion director. “In the case of alcohol, taxes also help prevent violence and road traffic injuries.”
While 108 of the WHO’s 194 member states already impose some taxes on SSBs, these taxes account for an average of just 6.6% of the price of soda. Furthermore, half of these countries also tax water, which is not recommended by the UN agency.
The WHO emphasized that minimum pricing, in addition to taxation, could reduce the consumption of cheap alcohol and decrease alcohol-related hospitalizations, fatalities, traffic violations, and crimes.
“A significant body of research has demonstrated that people who engage in heavy episodic drinking tend to drink the cheapest available alcoholic beverages,” the WHO stated. However, at least 22 countries, mainly in the European region, exempt wine from excise taxes.
Globally, the average tax on the most popular brand of beer is 17.2%, while for the most sold brand of spirits, it is 26.5%, according to the WHO’s findings.
The WHO countered the common industry argument that alcohol taxes disproportionately affect the poorest communities. The organization pointed out that this perspective disregards the “disproportionate harm per litre for alcohol consumers in lower socioeconomic groups.”
WHO Assistant Director-General Ailan Li emphasized, “A pressing concern is that alcoholic beverages have, over time, consistently become more affordable,” WHO Assistant Director-General Ailan Li said. “But increasing affordability can be curbed using well-designed alcohol tax and pricing policies.”
