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Sugary drinks and alcoholic beverages are becoming increasingly affordable in many countries due to persistently low tax rates, contributing to rising levels of obesity, diabetes, heart disease, cancers and alcohol-related injuries, according to new reports from the World Health Organization (WHO).

In two global reports released today, WHO warned that weak and outdated tax systems are allowing health-harming products to remain cheap, while public health systems face growing financial pressure from preventable non-communicable diseases and injuries. The agency is urging governments to significantly strengthen taxes on sugary drinks and alcoholic beverages.

“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said Tedros Adhanom Ghebreyesus, WHO director-general. He added that higher taxes on products such as tobacco, sugary drinks and alcohol can reduce harmful consumption while generating revenue for essential health services.

According to the reports, the global markets for sugary drinks and alcoholic beverages generate billions of dollars in profit, yet governments capture only a small share of this value through health-motivated taxation. As a result, societies are left to absorb the long-term health and economic costs linked to widespread consumption.

WHO found that at least 116 countries currently tax sugary drinks, most commonly carbonated soft drinks. However, many other high-sugar products – including 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas – are often exempt. While 97% of countries tax energy drinks, this figure has remained unchanged since the last global assessment in 2023.

A separate analysis showed that 167 countries levy taxes on alcoholic beverages, while 12 ban alcohol entirely. Despite this, alcohol has become more affordable or remained unchanged in price in most countries since 2022, as taxes have failed to keep pace with inflation and income growth. Wine remains untaxed in at least 25 countries, mainly in Europe, despite well-documented health risks.

“More affordable alcohol drives violence, injuries and disease,” highlighted Etienne Krug, director of WHO’s Department of Health Determinants, Promotion and Prevention. He noted that while industry profits, the public bears the health consequences and societies shoulder the economic costs.

Across regions, WHO identified consistently low tax shares on alcohol, with median global excise shares of 14% for beer and 22.5% for spirits. Sugary drink taxes were also found to be weak and poorly targeted, with the median tax accounting for around 2% of the retail price of a typical sugary soda.

In many cases, taxes apply only to a limited range of beverages, leaving large parts of the market untouched. Few countries regularly adjust taxes for inflation, allowing harmful products to become steadily more affordable over time.

These trends persist despite public support for stronger measures. A 2022 Gallup poll found that a majority of respondents supported higher taxes on alcohol and sugary beverages.

WHO is now calling on governments to raise and redesign health taxes under its new "3 by 35" initiative, which aims to increase the real prices of tobacco, alcohol and sugary drinks by 2035, making them less affordable over time and helping to protect public health.