Should we raise taxes on fruit juices, sugary drinks, and alcohol to combat diabetes and cancers?
Synopsis
Key Takeaways
- Raising taxes on sugary drinks and alcohol can help combat non-communicable diseases.
- Many high-sugar products remain untaxed, creating health risks.
- Low taxes contribute to increased consumption and health issues.
- Tax reforms could generate funds for crucial health services.
- Public health systems face pressure from preventable diseases linked to unhealthy products.
New Delhi, Jan 14 (NationPress) The World Health Organization (WHO) emphasizes that raising taxes on fruit juices, sugary beverages, and alcohol is crucial in combating the increasing prevalence of non-communicable diseases, such as obesity, diabetes, heart disease, cancers, and related injuries, particularly among children and young adults.
In their latest global reports, the WHO has raised alarms regarding the decreasing costs of sugary and alcoholic drinks, primarily due to persistently low tax rates in numerous nations.
While over 100 countries impose taxes on sugary drinks like sodas, other high-sugar items, including 100% fruit juices, sweetened milk beverages, and ready-to-drink coffees and teas, benefit from tax exemptions. The average tax on these products accounts for merely about 2% of the price of a typical sugary soda.
Moreover, only a limited number of countries have adjusted their tax rates to account for inflation, allowing these detrimental products to become increasingly affordable.
Due to their low cost, these harmful products are raking in billions in profits. Meanwhile, healthcare systems worldwide are under increasing financial strain from preventable non-communicable diseases and injuries, as reported by the WHO, which urges governments to significantly enhance taxes on sugary drinks and alcoholic beverages.
“Health taxes are among the most effective strategies we have for encouraging well-being and preventing diseases,” stated Dr. Tedros Adhanom Ghebreyesus, WHO Director-General.
“By increasing taxes on items like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and generate resources for essential health services,” he added.
In a separate report, the WHO noted that alcohol has either become more affordable or its prices have remained static in most nations since 2022, despite evident health hazards. At least 167 countries impose taxes on alcoholic beverages, while 12 countries have a complete ban on alcohol.
The WHO discovered that tax rates on alcohol across different regions are still low, with global excise share medians at 14% for beer and 22.5% for spirits.
“The rising affordability of alcohol leads to increased violence, injuries, and diseases,” remarked Dr. Etienne Krug, Director of the WHO’s Department of Health Determinants, Promotion, and Prevention.
“While the industry profits, the public often endures the health repercussions and society bears the economic burdens,” Krug added.
The WHO has urged nations to elevate and redesign their taxes, aiming to significantly increase the real prices of tobacco, alcohol, and sugary beverages by 2035, making them less accessible over time to safeguard public health.