What's Happening?
The World Health Organization (WHO) has released two new reports highlighting the health risks associated with the affordability of sugary drinks and alcoholic beverages. Due to low tax rates in many countries,
these products remain inexpensive, contributing to rising rates of obesity, diabetes, heart disease, cancers, and injuries, particularly among children and young adults. WHO Director-General Dr. Tedros Adhanom Ghebreyesus emphasized the importance of health taxes as a tool to reduce harmful consumption and fund essential health services. The reports reveal that while 116 countries tax sugary drinks, many high-sugar products escape taxation. Similarly, although 167 countries tax alcoholic beverages, alcohol has become more affordable in most countries since 2022, as taxes have not kept pace with inflation and income growth.
Why It's Important?
The affordability of sugary drinks and alcohol poses significant public health challenges, as these products are linked to preventable noncommunicable diseases and injuries. The WHO's call for stronger health taxes aims to curb consumption and alleviate the financial burden on health systems. By increasing taxes, governments can potentially reduce the prevalence of these diseases and generate revenue for health services. The reports underscore the need for comprehensive tax policies that adjust for inflation and target a broader range of products. This approach could lead to healthier populations and reduced healthcare costs, benefiting both individuals and society as a whole.
What's Next?
The WHO is advocating for countries to adopt its '3 by 35' initiative, which seeks to increase the real prices of tobacco, alcohol, and sugary drinks by 2035. This initiative aims to make these products less affordable over time, thereby protecting public health. Governments are encouraged to redesign their tax systems to capture a larger share of the market value of these products and to adjust taxes for inflation. The success of this initiative will depend on the willingness of countries to implement and enforce these tax measures, as well as public support for higher taxes on harmful products.
