WHO Warns Low Alcohol and Sugar Taxes Are Fueling Global Health Risks

The World Health Organization released two reports today warning that weak tax policies are keeping alcohol and sugary drinks too affordable in many countries. The reports highlight that wine remains untaxed in about 25 countries, and 42 percent of European nations do not levy any alcohol tax on wine. The WHO is urging governments to raise and redesign taxes on alcohol and sugar-sweetened beverages, arguing that low prices contribute to higher rates of illness, injury, and increased healthcare costs.

The reports were published from Geneva and draw attention to the fact that in many European countries, wine and non-alcoholic sugary drinks often escape additional taxation. The WHO says this situation allows harmful products to remain cheap while health systems face growing financial pressure from preventable diseases and injuries. The organization points out that consumption of these products, especially among children and young adults, leads to obesity, diabetes, heart disease, cancer, and injuries.

According to one of the reports, more than 740,000 new cancer cases worldwide in 2020 were linked to alcohol consumption. Etienne Krug, director of the WHO’s Department for Social Determinants of Health, said today that cheaper alcohol leads to violence, injuries, and disease. He noted that while the industry benefits from low taxes, the public bears the health consequences and society pays the economic costs.

Most countries already have some form of alcohol tax in place, but the WHO says these are often too low or poorly designed. Taxes are frequently not adjusted for inflation, making alcohol relatively cheaper over time. On average, taxes account for 20.9 percent of the retail price of beer and 28.4 percent for spirits. Wine is a notable exception: 42 percent of European countries do not tax it at all. Germany is among those countries; its alcohol prices are 14 percent lower than the European average, with only Italy offering cheaper rates.

Despite a decline in drinking over the past decade and growing interest in trends like “Dry January,” alcohol remains central to many social events in Germany. In 2022, people aged 15 and older consumed an average of 11.2 liters of pure alcohol per person—equivalent to about 448 half-liter glasses of beer.

German health organizations have long called for higher taxes on alcohol and tobacco as well as the introduction of a sugar tax. However, Germany’s finance ministry currently rejects a sugar tax proposal.

WHO Director-General Tedros Adhanom Ghebreyesus said at a press conference today that health taxes are among the most effective tools available for promoting health and preventing disease. He argued that by raising taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption while generating funds for essential health services.

The WHO also sees room for improvement in how sugary drinks are taxed globally. At least 116 countries impose taxes on sweetened beverages—mainly soft drinks—but these taxes average just two percent of the product’s price. In Europe, only 21 countries levy extra taxes on sweetened drinks; Germany is not among them. Lower-income countries are more likely to tax sweetened beverages than wealthier ones.

In most countries that do tax sweetened drinks—77 percent—sparkling water is also taxed. The WHO notes this is problematic because sparkling water is considered a healthier alternative to sodas or fruit juices. Sweetened dairy products, ready-to-drink coffees, and fruit juices are rarely taxed.

With its “3 by 35” initiative, the WHO aims to increase real prices for tobacco, alcohol, and sugary drinks by at least 50 percent through taxation by 2035. The organization estimates this could generate an additional $1 trillion in public revenue worldwide over the next decade.

The WHO’s latest call follows a report last year on tobacco risks. Today’s reports underline the organization’s position that stronger excise duties on alcohol and sugary drinks could have immediate effects on affordability and consumption patterns globally—and may prompt policy changes in many countries in the near future.