According to the World Health Organization (WHO), around 10.6 million people die annually due to alcohol consumption and sugary-sweetened beverage (SSB) consumption. The organization is advocating for higher taxes on these items to combat the negative health effects associated with their consumption.
The WHO made the call for increased taxes on alcohol and SSBs in a recent press statement. They highlighted that globally, 2.6 million deaths occur each year due to alcohol consumption, and over eight million deaths are linked to an unhealthy diet. Implementing taxes on these products is projected to reduce the number of related deaths.
New data released by the WHO revealed a low global rate of taxes being applied to unhealthy products such as alcohol and SSBs. The findings pointed out that the majority of countries are not utilizing taxes as a means to encourage healthier behaviors.
Furthermore, the report indicated that while 108 countries tax some form of sugar-sweetened beverage, the global average excise tax on these products represents only 6.6 percent of the price of soda. At least 148 countries have imposed excise taxes on alcoholic beverages at the national level. However, certain countries have exemptions, such as wine being exempt from excise taxes in at least 22 countries in the European Region.
A study from 2017 suggested that implementing taxes that increase alcohol prices by 50 percent could help prevent over 21 million deaths over 50 years and generate nearly $17 trillion in additional revenues. This is equivalent to the total government revenue of eight of the world’s largest economies in one year.
According to Dr. Rűdiger Krech, the WHO Director for Health Promotion, taxing unhealthy products can lead to healthier populations, reduce disease and generate revenue for governments to provide public services. Additionally, the WHO indicated that implementing taxes on alcohol and SSBs has been effective in reducing consumption and preventing injuries and noncommunicable diseases.
The organization pointed out the case of Lithuania, where an increase in alcohol tax in 2017 led to a decrease in alcohol-related deaths. The country experienced a rise in alcohol tax revenue and a drop in alcohol-related deaths per 100,000 people.
Overall, the WHO emphasized the importance of applying excise tax to all SSBs and alcoholic beverages and highlighted public support for increasing taxes on unhealthy products through a recent Gallup Poll conducted in collaboration with WHO and Bloomberg Philanthropies.
