Taxes to incentivise healthier behaviours are being under-used by many countries, according to research published by the World Health Organization (WHO).
Globally 2.6 million people die from drinking alcohol every year and over 8 million from an unhealthy diet. WHO said implementing more taxes on alcohol and sugary sweetened beverages (SSBs) would reduce these deaths.
“Taxing unhealthy products creates healthier populations,” said Dr Rűdiger Krech, WHO director, health promotion. “It has a positive ripple effect across society – less disease and debilitation and revenue for governments to provide public services. In the case of alcohol, taxes also help prevent violence and road traffic injuries.”
At least 148 countries have applied excise taxes to alcoholic beverages at the national level. However, wine is exempted from excise taxes in at least 22 countries, most of which are in the European Region.
Research shows that taxing alcohol and SSBs helps cut down use of these products and gives companies a reason to make healthier products.
The UK soft drinks industry levy (SDIL), which has been in place for five years, is having a positive impactbut health campaigners believe more needs to be done, with restrictions on advertising also needed. Pressure is also growing for the government to consider taxes on foods that are high in fat, salt and sugar.
The Environment, food and rural affairs (Efra) committee this year called the government to conduct a full impact assessment on the introduction of a tax on foods high in sugar, salt and fat. The government has said it will not conduct such a study.
A recent Gallup Poll, conducted in collaboration with WHO and Bloomberg Philanthropies, found that the majority of people surveyed across all countries supported increasing taxes on unhealthy products such as alcohol and SSBs.
WHO has also released a technical manual on alcohol tax policy and administration. A 2017 study shows that taxes that increase alcohol prices by 50% would help avert over 21 million deaths over 50 years and generate nearly $17 trillion in additional revenues.
