GENEVA, January 2026 — The affordability of sugary drinks and alcoholic beverages is rising globally due to persistently low tax rates, a trend the World Health Organisation (WHO) warns is directly fuelling epidemics of obesity, diabetes, heart disease, cancers, and injuries, with children and young adults particularly at risk.
In two stark new global reports released today, the WHO issued an urgent call for governments to significantly strengthen taxation on these products. The analysis reveals that weak tax systems allow harmful, profit-driving commodities to remain cheap, while public health systems buckle under the escalating financial strain of treating entirely preventable noncommunicable diseases and injuries.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” stated Dr Tedros Adhanom Ghebreyesus, WHO Director-General as he added that, “By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
The reports underscore a stark imbalance: the combined global market for sugary drinks and alcohol generates billions in corporate profit, driving widespread consumption. Yet, governments capture only a minor fraction of this value through health-motivated taxes, leaving societies to shoulder the profound long-term health and economic burdens.
Weak Policies
The data shows that at least 116 countries tax sugary drinks, predominantly targeting sodas. However, the policy net fails to capture many other high-sugar products, including 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas. While taxation of energy drinks is more widespread at 97% of countries, this figure has stagnated since the last global report in 2023.
Critically, the fiscal pressure applied is minimal. The median tax accounts for a mere 2% of the price of a common sugary soda, and its application is often narrow, missing large segments of the market.
Growing Affordability
A separate WHO report details that while at least 167 countries tax alcoholic beverages and 12 ban them entirely, affordability has increased or remained static in most nations since 2022. Taxes are failing to keep pace with inflation and income growth. Wine escapes any taxation in at least 25 countries, many in Europe, despite its established health risks.
The tax share on alcohol remains low globally, with median excise shares at just 14% for beer and 22.5% for spirits. Furthermore, few countries adjust these levies for inflation, allowing health-harming products to become steadily cheaper over time.
“More affordable alcohol drives violence, injuries and disease,” emphasized Dr. Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention. “While industry profits, the public often carries the health consequences and society the economic costs.”
These policy shortcomings persist despite clear public support. A 2022 Gallup Poll found a majority of surveyed people backed higher taxes on both alcohol and sugary beverages.
In response, the WHO is urging countries to raise and redesign taxes as a cornerstone of its new ‘3 by 35’ initiative. This ambitious strategy aims to increase the real prices of three key products: tobacco, alcohol, and sugary drinks by 2035, systematically making them less affordable to safeguard population health.
romondi99@theeyeswatchmedia.co.ke
