GENEVA – The World Health Organization (WHO) has called on the international community to increase taxes on alcohol and sugary sweetened beverages (SSBs).
In releasing new data earlier this week, the WHO said that a low global rate of taxes is being applied to unhealthy products such as alcohol and SSBs.
“The findings highlight that the majority of countries are not using taxes to incentivize healthier behaviors,” WHO said.
To help support countries, WHO said it is also releasing a technical manual on alcohol tax policy and administration.
Globally, WHO said 2.6 million people die from drinking alcohol every year and over 8 million from an unhealthy diet,
It said implementing tax on alcohol and SSBs will reduce these deaths.
WHO said half of all countries taxing SSBs are also taxing water, which it does not recommend.
Although 108 countries are taxing some sort of sugar-sweetened beverage, globally, on average excise tax, a tax designated for a specified consumer product, represents just 6.6 percent of the price of soda.
The WHO said at least 148 countries have applied excise taxes to alcoholic beverages at the national level. However, wine is exempted from excise taxes in at least 22 countries, most of which are in the European Region.
Globally, on average, WHO said the excise tax share in the price of the most sold brand of beer is 17.2 percent.
For the most sold brand of the most sold spirits type, it is 26.5 percent, WHO said.
It said a 2017 study shows that taxes that increase alcohol prices by 50 percent would help avert over 21 million deaths over 50 years and generate nearly US$17 trillion in additional revenues.
This is equivalent to the total government revenue of eight of the world’s largest economies in one year.
“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 Dr Rűdiger Krech, director, WHO Health Promotion. “In the case of alcohol, taxes also help prevent violence and road traffic injuries.”
WHO pointed to research that shows that taxing alcohol and SSBs helps cut down use of these products and gives companies a reason to make healthier products.
While, at the same time, tax on these products help prevent injuries and noncommunicable diseases such as cancers, diabetes and heart diseases.
WHO also pointed to a recent Gallup Poll, conducted in collaboration with WHO and Bloomberg Philanthropies, that found that the majority of people surveyed across all countries supported increasing taxes on unhealthy products such as alcohol and SBBs.
WHO recommended that excise tax should apply to all SSBs and alcoholic beverages.
