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The World Health Organisation on Tuesday urged countries to increase taxes on alcohol and sugary beverages. After studying taxation rates, the WHO report informed us that few states were using taxes to incentivize healthier behaviours. However, the average global tax rate on such unhealthy drinks was low. As per the report, increasing taxes could lead to healthier populations.
The UN health agency made a statement on this, saying, "WHO recommends that excise tax should apply to all sugar-sweetened beverages (SSBs) and alcoholic beverages." According to the WHO, 2.6 million people die in a year from consuming alcohol, while 8 million people lose their lives annually from having a poor diet. "Implementing a tax on alcohol and SSBs will reduce these deaths," the organisation said.
The report further added that raising the taxes on these beverages would not only help cut down on consumption of these products but also give companies motivation to make healthier products. It said that even though 108 countries have imposed some taxation on SSBs, the excise taxes on average represent only 6.6% of the price of a soda.
"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," said Rudiger Krech, the WHO's health promotion director. "In the case of alcohol, taxes also help prevent violence and road traffic injuries," he further added.
WHO on Tuesday released an alcohol tax policy and administration manual for its 194 member states. "A significant body of research has demonstrated that people who engage in heavy episodic drinking tend to drink the cheapest available alcoholic beverages," the manual said. Around 148 countries impose national excise taxes on alcoholic drinks.
"However, wine is exempted from excise taxes in at least 22 countries, most of which are in the European region," the WHO said. Globally, the average excise tax share in the price of the most popular brand of beer is 17.2%. On the other hand, for the most-sold brand of the most-sold type of spirits, the share is 26.5%, as per the organisation.
"A pressing concern is that alcoholic beverages have, over time, consistently become more affordable," said WHO assistant director-general Ailan Li. "But increasing affordability can be curbed using well-designed alcohol tax and pricing policies," he further added.
