WHO Reports Urge Higher Taxes on Alcohol and Sugary Drinks Amid Growing Health Concerns

The World Health Organization (WHO) has released its Global Report on the Use of Alcohol Taxes, 2025 and Global Report on the Use of Sugar Sweetened Beverage Taxes, 2025. These reports conclude that excise taxes on alcoholic beverages and sugar-sweetened beverages (SSBs) in many countries are often low and do not keep pace with inflation.

Excise taxes on alcoholic beverages and sugar-sweetened beverages in many countries are often low and do not keep pace with inflation, making these products increasingly affordable.

According to the WHO, this situation makes these products increasingly affordable, which may lead to higher consumption levels. The organization links increased consumption to both communicable and non-communicable diseases, placing additional pressure on healthcare systems.

Systemic Flaws and Proposed Solutions

The reports also highlight design deficiencies in current tax systems. These include the exclusion of certain high-sugar beverages from tax bases and insufficient use of automatic inflation adjustments.

The WHO suggests that implementing higher excise taxes could motivate producers to reduce the sugar content in beverages. This approach aims to address public health concerns by influencing product formulation.

Implications for Authorities and Industry

These findings could prompt revenue authorities to consider more active approaches to strengthening excise frameworks, driven by public health concerns.

Companies operating in the alcohol and beverage industries are advised to anticipate potential tax increases or structural changes to these taxation systems. This proactive stance from authorities would be a direct response to the WHO's assessment.