The World Health Organization is pushing governments worldwide to increase taxes on sugary drinks and alcoholic beverages. This global health body argues that weak tax systems keep these harmful products cheap, driving up rates of obesity, diabetes, cancer, and heart disease.
WHO's 3 by 35 Initiative Aims to Make Unhealthy Products Less Affordable
Releasing two new reports, the WHO has called on countries to raise and redesign taxes as part of its 3 by 35 initiative. This program aims to increase prices of tobacco, alcohol, and sugary drinks by 2035, making them progressively less affordable to protect public health.
"Health taxes are one of the strongest tools we have for promoting health and preventing disease," said WHO Director-General Dr. Tedros Adhanom Ghebreyesus during a virtual interaction with media. He believes increasing taxes on these products can help governments reduce harmful consumption while generating funds for essential health services.
India's Tobacco Tax Move Receives WHO Applause
The WHO specifically welcomed India's initiative to raise taxes on tobacco and related products. Starting February, pan masala, cigarettes, and tobacco products will attract a 40% GST, while bidis will have an 18% GST rate according to a Central government notification.
Dr. Shalini Singh, Director of the Indian Council of Medical Research-National Institute of Cancer Prevention and Research, noted that the WHO reports arrive at a critical time for India. Non-communicable diseases account for over 60% of all deaths in the country.
"The WHO finding that sugary drink taxes account for merely two per cent of product prices globally mirrors weak taxation framework for these health-harming products," Dr. Singh explained. "What is particularly concerning is the impact on children and adolescents."
Rising Health Concerns for Indian Youth
Dr. Singh highlighted several alarming trends affecting India's younger population:
- Rising obesity rates among Indian children, fueled by aggressive marketing of sugary beverages
- Early-onset diabetes and metabolic disorders that increase cancer risk later in life
- Alcohol consumption as a well-established risk factor for multiple cancers including oral, oesophageal, liver, colorectal and breast cancers
Why Sugary Drinks and Alcohol Remain Cheap Globally
The WHO reports reveal that sugary drinks and alcoholic beverages are becoming cheaper in most countries due to consistently low tax rates. This affordability fuels health problems, especially among children and young adults.
Key findings from the reports include:
- At least 116 countries tax sugary drinks, but many high-sugar products like 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas escape taxation
- While 97% of countries tax energy drinks, this figure hasn't changed since 2023
- At least 167 countries have levied taxes on alcoholic beverages, with 12 countries banning alcohol entirely
- Alcohol has become more affordable or maintained stable prices in most countries since 2022 as taxes fail to keep pace with inflation and income growth
- Wine remains untaxed in at least 25 countries, mostly in Europe, despite clear health risks
Weak Tax Structures Across Regions
The WHO found that tax shares on alcohol remain low globally, with excise share medians of 14% for beer and 22.5% for spirits. Sugary drink taxes are particularly weak and poorly targeted, with the median tax accounting for only about 2% of the price of a common sugary soda.
These taxes often apply to only a subset of beverages, missing large segments of the market. Few countries adjust taxes for inflation, allowing health-harming products to become increasingly affordable over time.
What India Needs for Effective Health Taxation
Dr. Singh emphasized that India requires comprehensive taxation reform covering all sugar-sweetened beverages, all types of alcohol, and all tobacco products. She stressed the need for regular inflation-indexed adjustments to prevent erosion of tax effectiveness.
"We need a harmonized GST structure that prioritizes health over revenue considerations," Dr. Singh added. "This is particularly important for alcohol where state-level variations create policy inconsistencies."
The WHO's call for stronger health taxes comes as countries worldwide grapple with rising healthcare costs for preventable non-communicable diseases and injuries. By making unhealthy products less affordable through taxation, governments could potentially save lives while reducing long-term healthcare burdens.
