La World Health Organization (WHO) has taken another firm stance and called on governments around the world to clearly and consistently raise the taxes on alcohol and sugary drinksThe goal is not only to raise more money, but also to reduce the consumption of products that are behind a number of preventable diseases.
According to the United Nations health agency, the laxity of tax systems Current technologies have allowed these products to remain relatively inexpensive, precisely at a time when healthcare systems, both in Europe, as in the rest of the worldThey deal with increasing pressure caused by non-communicable diseases such as obesity, diabetes, heart disease, various types of cancer and preventable injuries, especially among children and young adults.
Healthcare taxes: a powerful but underutilized tool
WHO officials insist that the so-called “taxes for health” They are one of the most effective levers for preventing disease and saving lives. Their Director-General, Tedros Adhanom Ghebreyesus, emphasizes that by increasing the tax burden on tobacco, alcohol, and sugary drinks, governments can reduce harmful consumption and, at the same time, free up resources to strengthen essential public health services.
The UN agency emphasizes that the approach is not only health-related, but also economic: it is a intervention with a dual purposeOn the one hand, it raises the final price and curbs demand for harmful products; on the other, it allows states to have more funds to finance healthcare, prevention programs and policies to promote healthier lifestyles, something especially relevant for European countries with strained public systems.
The WHO maintains that these taxes function as a kind of price signalThe more expensive alcohol or sugary drinks are, the lower their consumption, particularly among lower-income groups and young people. In this regard, the organization insists that a symbolic tax is not enough; it must be high enough, stable, and well-designed to truly change purchasing behavior.
A multi-million dollar market where states capture only a portion of the value.
In its latest reports, the WHO describes a striking economic imbalanceThe global market for sugary and alcoholic beverages moves billions of dollars a year and generates huge profits for companies in the sector, but governments only capture a fraction of that value through taxes specifically aimed at health.
This tax design makes the the real burden falls on societyWhile the industry maintains high margins, it is the health systems, families, and national economies that bear the long-term costs: treatments for type 2 diabetes, heart interventions, lifelong medication, sick leave, loss of productivity, or care for the aftereffects of injuries related to alcohol abuse.
The organization warns that this scheme results unsustainable over timeThis is especially true in European countries with aging populations and a high prevalence of chronic diseases. Without tax reforms, healthcare budgets will continue to exacerbate the damage caused by consumption that could be significantly reduced with a more ambitious tax policy.
Sugary drinks: many countries tax them, but the tax is minimal.
In the section on sugary drinks, the WHO estimates that at least 116 countries apply some type of tax, most of them focused on sugary soft drinks or sodas. However, behind this figure lies a problem: the average tax only represents around 2% of the price of a standard soft drink, such a low proportion that it hardly changes consumers' purchasing decisions.
Furthermore, the coverage of these taxes is very uneven. Many high-sugar products They fall directly outside the tax radar.100% fruit juices (despite their high free sugar content), sweetened dairy drinks, ready-to-drink coffees and teas, and certain functional beverages packed with added sugars. This lack of consistency means that a large part of the market escapes the logic of health taxes.
The WHO also points out that, although 97% of countries tax energy drinksThis proportion has been stagnant since the previous global report, published in 2023. The snapshot, therefore, shows a fiscal framework that does not adapt quickly enough to the proliferation of new categories and formats of sugary drinks, which are very present in European and Spanish supermarkets.
Another major weakness is that Few countries regularly update their taxes. in line with inflationWhen taxes remain frozen for years, the result is that sugary drinks become more affordable in real terms, even if the nominal price rises slightly. In practice, this means that the tax's deterrent effect diminishes over time.
Alcohol, more affordable despite being taxed in most countries
In the case of alcohol, the picture painted by the WHO is similar. At least 167 countries apply excise taxes on alcoholic beverages, and a dozen maintain complete bans on their sale. However, data collected since 2022 shows that alcohol has become more affordable or has maintained its real price In most of those countries, this is because tax updates have fallen far behind inflation and income growth.
The organization focuses, in particular, on the situation of wineAs of today, at least 25 countries, mostly EuropeanThey continue to not apply special taxes to wine, beyond VAT or general taxes. This occurs despite scientific evidence linking alcohol consumption, even in moderate amounts, to a higher risk of certain types of cancer and other diseases.
For the WHO, keeping wine out of health taxation is a clear example of regulatory inconsistencyThis is especially true in regions where alcohol is part of the everyday culinary culture, such as Spain, France, or Italy. This tax exemption prevents sending a clear message to the public about the real risks associated with alcohol consumption.
Regarding other products, the WHO notes that The global median tax on beer is around 14%. of the final price, while for spirits and liqueurs it stands at around 22,5%. Although these figures may seem high, the organization insists that, without regular updates and without a design that takes into account the alcohol content or the type of product, affordability tends to increase over time.
The WHO warns about the affordability and social impact of alcohol
For WHO experts, the increasing accessibility of alcohol in real terms is no small matter. Etienne Krug, head of the Department of Health Determinants, Promotion and Prevention, has pointed out that cheaper and more accessible alcohol This translates into higher levels of violence, more traffic and work-related injuries, and an increased burden of diseases associated with continued consumption.
The organization insists that, while the industry obtains significant benefitsThe public bears the health effects and society as a whole assumes the indirect economic costs: hospital emergencies, rehabilitation, road accidents, low productivity and a long etcetera that ends up impacting state budgets and, ultimately, taxpayers.
In Europe, where per capita alcohol consumption is generally above the global average, this message takes on particular relevance. Countries with a strong tradition of wine, beer, or spirits, such as Spain, Germany, and the Nordic countries, face the challenge of review your tax strategies without losing sight of the social and economic sensitivity that accompanies the sector.
The WHO proposes that taxes should be designed not only based on the type of beverage, but also on its alcohol content and the sales format, in order to discourage higher-risk products and prevent consumers from shifting to even cheaper but equally harmful options.
Citizen support and the global framework “3 for 35”
One of the arguments the WHO uses to encourage European and other regional governments to take this step is that Public opinion is not so much against it of these taxes, as is sometimes commonly thought. A Gallup poll conducted in 2022 and cited by the organization revealed that the majority of respondents supported the tax increase on alcohol and sugary drinksprovided that its health purpose is clearly explained.
On this basis, the WHO has launched the global initiative “3 for 35”which sets a clear goal: to raise the real prices of three key products—tobacco, alcohol, and sugary drinks—by 2035, with the aim of progressively reduce its affordabilityThis is a roadmap aimed at helping countries reform their tax systems with quantifiable goals and defined deadlines.
In the case of Europe, and Spain in particular, this initiative can serve as framework to review existing tax structures on soft drinks, alcoholic beverages and other high-sugar products, and to assess both the creation of new taxes and the restructuring of existing ones.
The WHO encourages that the additional revenue generated by these taxes be allocated, in a transparent manner, to strengthen health systemsNutrition education programs, addiction prevention, and the promotion of healthier lifestyles are all part of this strategy. This link between taxation and healthcare spending is key to gaining public support and avoiding the perception that it is merely a revenue-raising measure.
The message conveyed by the WHO, through its latest reports, is that taxes on alcohol and sugar These measures have fallen short and been poorly designed, allowing products with a significant health impact to remain prohibitively cheap in much of the world, including Europe. Strengthening and redesigning these taxes—by expanding coverage to more types of beverages, raising effective rates, and adjusting them for inflation—is emerging as a key element in easing the pressure on healthcare systems and curbing the spread of diseases that are largely preventable with more decisive public policies.