WHO calls for higher taxes on alcohol, sugary drinks

The World Health Organization (WHO) called on governments around the world to increase taxes on alcohol and sugar-sweetened beverages (SSBs).

After studying taxation rates, the WHO said Tuesday that it believes the average global tax rate on "unhealthy products" was too low, while items such as wine are completely exempt from tax in some European countries.

According to the WHO, 2.6 million people die from drinking alcohol and 8 million people die due to unhealthy diets every year.

The UN health agency said higher taxes would help reduce consumption of the products and incentivise companies to make healthier products.

"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 Rüdiger Krech, the WHO's health promotion director. "In the case of alcohol, taxes also help prevent violence and road traffic injuries."

The WHO added that while 108 of its 194 member states already impose some taxes on SSBs, they account for an average of just 6.6% of the price of soda.

Half of those countries, the WHO noted, also tax water, which is not recommended by the UN agency.

The WHO said minimum pricing alongside taxation could curb consumption of cheap alcohol and reduce drink-related hospitalizations, deaths, traffic violations and crimes. 

"A significant body of research has demonstrated that people who engage in heavy episodic drinking tend to drink the cheapest available alcoholic beverages," the WHO said. "However, wine is exempted from excise taxes in at least 22 countries, most of which are in the European region."

Globally, on average, the tax on the price of the most sold brand of beer is 17.2%, while for the most sold brand of the most sold type of spirits, it is 26.5%, the WHO reported.

While the drinks industry often cites alcohol taxes as affecting the poorest communities hardest, the WHO countered that such a view ignores the "disproportionate harm per litre for alcohol consumers in lower socioeconomic groups."

"A pressing concern is that alcoholic beverages have, over time, consistently become more affordable," WHO Assistant Director-General Ailan Li said. "But increasing affordability can be curbed using well-designed alcohol tax and pricing policies."