WHO global report on use of sugary drinks taxes
The World Health Organization (WHO) has released a global report on the use of sugar-sweetened beverage taxes.
Sugar-sweetened beverages (SSBs) are a significant source of free sugars and are associated with increased risk of tooth decay, overweight and obesity, type 2 diabetes and several other non-communicable diseases.
To date, many countries have applied excise taxes to these drinks, primarily with the aim of raising revenue, but an increasing number of countries are now taxing SSBs to promote healthy diets, including the UK’s Soft Drinks Industry Levy. However, there is significant variation in the design and level of existing taxes, and many are not optimised to achieve public health goals.
Key findings and takeaways from the report:
- As of July 2022, excise taxes were applied at national level to at least one type of SSB in at least 108 countries.
- Most countries do not tax fruit juices, sugar-sweetened ready-to-drink tea or coffee, and sugar-sweetened milk-based drinks (including plant-based milk substitutes), even though these products contain free sugars, which might be leading to undesirable substitutions towards these drinks.
- About 46% of countries that apply excise taxes to SSBs include unsweetened bottled water, rather than incentivising water as a healthy alternative.
- Less than a quarter of countries surveyed account for sugar content when they impose taxes on SSBs. The WHO encourages countries with a sufficiently strong tax administrative capacity to tax beverages based on sugar content, as it can encourage consumers to substitute with alternatives that have lower sugar content as well as incentivise the industry to reformulate drinks to contain less sugar.
- Despite increased interest globally in SSB taxes, actual tax rates remain low.
- The evidence to support implementing or raising taxes on SSBs is robust and Member States have endorsed various action plans and strategies for preventing NCD and promoting healthier diets that specifically call for the introduction of taxes on SSBs. However, most countries still do not apply public health-motivated taxes on SSBs.
In summary, the WHO's report concludes that the design and level of existing taxes on SSBs could be improved to reduce consumption. While other factors have to be considered when designing taxation policies, the protection of health should be a key consideration, particularly considering the health and economic burden associated with obesity and diet-related NCDs.