GLOBAL – In a recent statement, the World Health Organization (WHO) called on countries worldwide to raise taxes on alcohol and sugar-sweetened beverages (SSBs) to incentivize healthier lifestyles, citing low global taxation rates on these “unhealthy products.”
The WHO emphasized the potential positive impact of increased taxes on public health, suggesting it could lead to healthier populations and reduce the number of deaths associated with alcohol consumption and unhealthy diets.
The UN health agency recommended the application of excise taxes to all SSBs and Alcoholic Beverages. “Excise taxes, which target specific goods and services, can play a crucial role in shaping consumer behaviour and encouraging companies to produce healthier alternatives,” it stated.
The WHO highlighted that 2.6 million people die annually due to alcohol-related causes, while more than 8 million deaths are attributed to unhealthy diets.
According to the WHO, implementing taxes on alcohol and SSBs not only reduces consumption but also provides companies with an incentive to develop and promote healthier products.
The organization stated, “Globally, on average, the excise tax share in the price of the most sold brand of beer is 17.2%. For the most sold brand of the most sold spirits type, it is 26.5%. This indicates a need for more substantial taxation measures.”
While acknowledging that 108 countries impose some taxation on SSBs, the WHO underscored the importance of increasing excise taxes to have a more significant impact on consumer choices. It cautioned against taxing water; a practice adopted by half of the countries with SSB taxes.
Rudiger Krech, the WHO’s health promotion director, emphasized the broader societal benefits of taxing unhealthy products, including a reduction in diseases and debilitation, as well as generating revenue for governments to invest in public services.
The WHO referred to a 2017 study indicating that a 50% increase in alcohol prices through taxes could prevent over 21 million deaths over 50 years and generate nearly $17 trillion in additional revenues.
The organization also released a manual on alcohol tax policy and administration, advocating for minimum pricing combined with taxation to curb consumption of inexpensive alcohol and address associated health and social issues.
Despite concerns about the potential impact on the poorest populations, the WHO argued that well-designed alcohol tax and pricing policies could effectively address affordability issues and mitigate the disproportionate harm faced by lower socioeconomic groups.
In response to the call for higher taxes, the British Soft Drinks Association expressed skepticism, citing a lack of compelling evidence that taxes have significantly impacted obesity levels.
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