Finance
WHO says low taxes are making sugary drinks, alcohol more affordable
Published by Global Banking and Finance Review
Posted on January 13, 2026
WHO says low taxes are making sugary drinks, alcohol more affordable
Impact of Health Taxes on Consumption
By Christy Santhosh
Affordability Trends in 2024
Jan 13 (Reuters) - Sugary drinks and alcohol are not being sufficiently taxed and remain affordable, making it harder to tackle the chronic health problems caused by these beverages, according to two reports from the World Health Organization.
Challenges in Implementing Health Taxes
The WHO has called for higher taxes on alcohol and sugar-sweetened drinks multiple times in recent years, arguing it would help cut consumption of the products which contribute to diseases such as diabetes, as well as raise money at a time when development aid is shrinking and public debt is rising.
Expected Revenue from Tax Initiatives
According to a report from WHO, sugary drinks have become more affordable in 62 countries in 2024 compared with 2022. In a separate report, the health agency said beer has become more affordable in 56 countries during the same period.
"Health taxes are not a silver bullet, and they're not simple. They can be politically unpopular and they attract opposition from powerful industries with deep pockets and a lot to lose, but many countries have shown that when they're done right, they're a powerful tool for health," said WHO Director-General Tedros Ghebreyesus.
Last year, the health agency launched the "3 by 35" initiative to push countries to raise the prices of sugary drinks, alcohol and tobacco by 50% over the next 10 years through taxation.
WHO expects the tax initiative to raise $1 trillion by 2035, based on evidence from health taxes in countries such as Colombia and South Africa.
Soda makers such as Coca-Cola and PepsiCo, and Mondelez, which manufactures Oreo cookies, have faced scrutiny from U.S. Health Secretary Robert F. Kennedy Jr., who has pushed the "Make America Healthy Again" agenda, recommending that consumers avoid highly processed foods and eat more protein and less sugar to achieve a healthy diet.
(Reporting by Christy Santhosh and Neil J Kanatt in Bengaluru; Editing by Krishna Chandra Eluri)
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