In a press statement on Tuesday, December 5, the World Health Organization (WHO) revealed alarming statistics: globally, 2.6 million people lose their lives each year due to alcohol consumption, while over eight million succumb to the consequences of an unhealthy diet.
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The WHO is calling for increased taxes on alcohol and sugar-sweetened beverages (SSBs) as a means to reduce the death toll attributed to these unhealthy behaviors.
New data released by the WHO underscores that taxes on unhealthy products like alcohol and SSBs are generally low worldwide. This information reveals that most countries are not using taxes as an incentive for healthier choices.
Surprisingly, half of the countries taxing SSBs are also taxing water, a practice not recommended by WHO. While 108 countries have imposed taxes on some form of sugar-sweetened beverage, the average excise tax, which is designed for specific consumer products, makes up just 6.6% of the soda price on a global scale.
Regarding alcoholic beverages, excise taxes have been implemented at the national level in at least 148 countries. However, wine remains exempt from excise taxes in at least 22 countries, primarily in Europe. Globally, the excise tax share in the price of the most sold brand of beer is 17.2%, and for the most sold brand of the most popular type of spirits, it is 26.5%.
A 2017 study showed that increasing alcohol prices through taxes by 50% could prevent over 21 million deaths over five decades and generate nearly $17 trillion in additional revenues. This is equivalent to the total government revenue of eight of the world’s largest economies in a single year.
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“Taxing unhealthy products creates healthier populations. It has a positive ripple effect across society โ less disease and debilitation and revenue for governments to provide public services. In the case of alcohol, taxes also help prevent violence and road traffic injuries,” emphasized WHO Director for Health Promotion, Dr. Rลฑdiger Krech.
