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WHO Urges Sharp Tax Hikes as Sugary Drinks and Alcohol Grow More Affordable

New WHO reports say weak levies keep sugary drinks and alcohol cheap, fueling rising noncommunicable disease burdens.

Overview

  • The WHO says current health taxes are generally too low, poorly designed and rarely adjusted to meet public health goals.
  • Average taxes are about 2% of price for sugary drinks, roughly 14% for beer and around 22.5% for spirits, according to the reports.
  • Between 2022 and 2024, sugary drinks became more affordable in 62 countries and beer in 56 countries as levies failed to keep pace with inflation and income growth.
  • While at least 116 countries tax some sugary drinks and 167 tax alcohol, many high‑sugar products escape taxation and wine remains untaxed in about 25 countries.
  • The WHO is pressing countries to redesign and regularly index health taxes, targeting at least a 50% increase by 2035, and highlights Mexico’s 2025 IEPS hike of 87.3% with revenues earmarked for a health fund as a recent example.