Sugary drinks and alcoholic beverages are getting cheaper in most countries because tax rates stay low, fueling obesity, diabetes, heart disease, cancers, and injuries—especially in children and young adults. Two new World Health Organisation (WHO) reports: “Global report on the use of alcohol taxes, 2025” and “Global report on the use of sugar-sweetened beverage taxes, 2025” call on governments to significantly strengthen taxes on these products, warning that weak tax systems let harmful drinks stay cheap while health systems face mounting pressure from preventable diseases.
At least 116 countries tax sugary drinks, many of which are sodas. But plenty of high-sugar products escape taxation—like 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas. While 97% of countries tax energy drinks, that figure hasn’t changed since 2023. A separate report shows at least 167 countries levy taxes on alcoholic beverages, while 12 ban alcohol entirely. Despite this, alcohol has become more affordable or stayed the same price in most countries since 2022, as taxes fail to keep up with inflation and income growth.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said Dr. Tedros Adhanom Ghebreyesus, WHO Director-General. “By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.” The combined global market for sugary drinks and alcoholic beverages generates billions in profit, driving widespread consumption. Yet governments capture only a small share through health-motivated taxes, leaving societies to bear the long-term health and economic costs.
WHO found tax shares on alcohol remain low across regions, with global excise share medians of 14 percent for beer and 22.5 percent for spirits. Sugary drink taxes are weak and poorly targeted—the median tax accounts for only about 2 percent of the price of a common soda and often applies to just a subset of beverages, missing large parts of the market. Few countries adjust taxes for inflation, letting these products become steadily more affordable. Wine remains untaxed in at least 25 countries, mostly in Europe, despite clear health risks.
“More affordable alcohol drives violence, injuries and disease,” said Dr. Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention. “While industry profits, the public often carries the health consequences and society the economic costs.” A 2022 Gallup Poll found the majority of people surveyed supported higher taxes on alcohol and sugary beverages. WHO is calling on countries to raise and redesign taxes as part of its new 3 by 35 initiative, which aims to increase the real prices of tobacco, alcohol, and sugary drinks by 2035 to make them less affordable and protect people’s health.
