Plastic bottles of assorted carbonated soft drinks in variety of colours. image representational purposes only.
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Sugary drinks and alcoholic beverages are getting cheaper, due to consistently low tax rates in most countries, fuelling obesity, diabetes, heart disease, cancers and injuries, especially in children and young adults, warned the World Health Organization (WHO) while releasing two new global reports on Tuesday (January 13, 2026).
The apex health institute has now called on governments to significantly strengthen taxes on sugary drinks and alcoholic beverages indicating that weak tax systems are allowing harmful products to remain cheap while health systems face mounting financial pressure from preventable noncommunicable diseases and injuries.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said 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.”
Corporate profit
The combined global market for sugary drinks and alcoholic beverages generates billions of dollars in profit, fuelling widespread consumption and corporate profit. Yet governments capture only a relatively small share of this value through health-motivated taxes, leaving societies to bear the long-term health and economic costs the WHO maintained.
The reports show that at least 116 countries tax sugary drinks, many of which are sodas. But many other high-sugar products, such as 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, escape taxation. While 97% of countries tax energy drinks, this figure has not changed since the last global report in 2023.
A separate WHO report shows that at least 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 fail to keep pace with inflation and income growth. Wine remains untaxed in at least 25 countries, mostly in Europe, despite clear health risks.
While industry profits, the public often carries the health consequences and society the economic costs said WHO.
The WHO is now 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 three products, tobacco, alcohol and sugary drinks by 2035, making them less affordable over time to help protect people’s health.
Published – January 13, 2026 09:09 pm IST
