WHO wants to increase taxes on soda and booze
- New data shows a widespread lack of taxes on unhealthy items
- 2.6 million people succumb to alcohol-related causes annually
- After Lithuania raised alcohol taxes, alcohol-related deaths decreased
FILE – A McDonald’s beverage sits in a cup holder, April 27, 2021, in Des Moines, Iowa. McDonald’s plans to eliminate self-service soda machines at all of its U.S. restaurants by 2032, the Chicago-based fast food chain has confirmed. In an email to The Associated Press on Tuesday, Sept. 12, 2023, McDonald’s USA said the goal of the change is to create consistency for customers and crew members across the chain’s offerings — from in-person dining to online delivery and drive-thru options. (AP Photo/Charlie Neibergall, File)
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(NewsNation) — The World Health Organization (WHO) urged governments globally to raise taxes on both alcohol and sugar-sweetened beverages (SSBs).
In a move aimed at addressing the global health crisis, WHO revealed new data that underscores a widespread lack of taxes on unhealthy items. The findings show that most countries are not leveraging taxes to encourage healthier behaviors.
Globally, 2.6 million people succumb to alcohol-related causes annually, while over 8 million die due to an unhealthy diet. The implementation of taxes on unhealthy items is seen as a pivotal step to curtail these fatalities, according to WHO.
Surprisingly, half of the nations taxing SSBs are also imposing taxes on water, a practice not recommended by WHO. Despite 108 countries levying some form of sugar-sweetened beverage tax, the global average for excise tax — a tax earmarked for specific consumer products — stands at 6.6% of soda prices.
At the national level, excise taxes on alcoholic beverages have been applied by at least 148 countries. However, an exemption exists for wine in 22 countries, primarily in the European region. On a global scale, the excise tax constitutes 17.2% of the price of the most sold brand of beer and 26.5% for the most sold brand of the type of the predominant spirits.
A 2017 study indicates that a 50% increase in alcohol prices through taxes could prevent over 21 million deaths over 50 years and generate an additional nearly $17 trillion in revenues — equivalent to the total government revenue of eight of the world’s largest economies in a single year.
“Taxing unhealthy products creates healthier populations. It has a positive ripple effect across society — 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,” said Dr Rűdiger Krech, director of health promotion at WHO.
Highlighting success stories, Lithuania’s decision to raise alcohol taxes in 2017 resulted in a decline in alcohol-related deaths. The country witnessed an increase in alcohol tax revenue from 234 million euros in 2016 to 323 million euros in 2018, accompanied by a drop in alcohol-related deaths from 23.4 per 100,000 people in 2016 to 18.1 per 100,000 people in 2018.
Other countries, including Mexico and Hungary, have introduced national junk food taxes with impressive results, The Hill reported.
A recent Gallup Poll, conducted in collaboration with WHO and Bloomberg Philanthropies, revealed that a majority of surveyed individuals across all countries support increased taxes on unhealthy products like alcohol and SSBs.
As a supportive measure, WHO also launched a technical manual on alcohol tax policy and administration.