On Tuesday (Dec 5), the World Health Organization (WHO) called on countries to raise prices on alcohol and sugar-sweetened beverages (SSBs), noting that the majority of countries do not incentivize healthy behaviours. The recommendations were based on research on taxation rates conducted by the United Nations health agency, which discovered that the average global tax rate on such “unhealthy products” was low, and raising taxes may result in healthier populations and fewer deaths. “The WHO recommends that an excise tax be imposed on all sugar-sweetened beverages (SSBs) and alcoholic beverages,” the UN agency stated. Excise taxes are levied on certain consumer goods.
According to WHO, alcohol kills approximately 2.6 million people worldwide, while a poor diet kills more than eight million, and imposing a charge on them “will reduce these deaths.” According to the UN, hiking the tariff will not only assist in reducing the consumption of harmful beverages but will also incentivize producers to create healthier products. “Taxing unhealthy foods results in healthier populations.” In the announcement, Rüdiger Krech, the UN agency’s health promotion director, said, “It has a positive ripple effect across society, less disease and debilitation, and revenue for governments to provide public services.”
At least 148 countries have imposed national excise taxes on alcohol
“In the case of alcohol, taxes also help prevent violence and road traffic injuries,” he went on to say. According to the UN health agency, the levy on these items would help reduce non-communicable diseases such as cancer, diabetes, and heart disease. The research also stated that half of all nations pricing SSBs also tax water, which the WHO does not recommend. Approximately 108 of its 194 members tax SSBs in some way. Globally, excise taxes account for only 6.6% of the price of a drink on average. Furthermore, at least 148 countries have imposed national excise taxes on alcohol. According to WHO, wine is exempt from excise duties in at least 22 nations, most of which are in Europe.
According to the UN agency, the levy on the most popular beer brand is 17.2 per cent. Meanwhile, the tax on the most popular brand of the most popular type of spirit is 26%. “A significant body of research has demonstrated that people who engage in heavy episodic drinking tend to drink the cheapest available alcoholic beverages,” according to the World Health Organization (WHO). According to the research, which cites a 2017 study, raising alcohol prices by 50% would save over 21 million lives over the next five years and create about $17 trillion in additional money.