The World Health Organisation (WHO) has renewed its appeal to nations worldwide to raise taxes on alcohol and sugary beverages. This move aims to mitigate their adverse health impacts and encourage healthier lifestyles. According to the latest WHO report, the global tax rate on such products remains notably low, indicating that higher taxes could significantly enhance consumer health.
The report highlights that implementing a tax on alcohol and Sugar-Sweetened Beverages (SSB) could substantially reduce deaths attributed to these products. Currently, 108 countries impose taxes on sugar-sweetened beverages, but the global average excise tax—specifically levied on certain products—accounts for just 6.6% of the price of soda.
On the alcohol front, 148 countries have established excise taxes at the national level. However, in at least 22 countries, predominantly in Europe, wine is exempt from these taxes. For beer and spirits, the excise tax share in the price varies globally, averaging 17.2% for beer and 26.5% for spirits.
Interestingly, WHO notes that about half of the countries taxing SSBs also impose taxes on water, a practice it advises against. Rűdiger Krech, the Director of Health Promotion at WHO, asserts that taxing unhealthy products not only fosters healthier populations but also generates revenue for governments to fund public services. Such taxes can also help prevent alcohol-related violence and road traffic injuries.
Globally, alcohol consumption leads to 2.6 million deaths annually, while unhealthy diets contribute to over eight million deaths. A 2017 study suggests that a 50% increase in alcohol taxes could prevent over 21 million deaths in 50 years and generate revenues nearing $17 trillion.
Lithuania serves as a case study, having increased its alcohol tax in 2017, leading to a significant decrease in alcohol-related diseases and deaths. Following this tax hike, Lithuania’s alcohol tax revenue rose from 234 million euros in 2016 to 323 million euros in 2018, alongside a drop in alcohol-related deaths.
According to a report by This Day Live, taxing alcohol and SSBs has proven effective in reducing consumption and encouraging manufacturers to create healthier products. In Nigeria, following the National Action on Sugar Reduction (NASR) coalition’s advocacy, a 10 naira per litre excise tax was introduced in 2021 on non-alcoholic, sweetened carbonated beverages. However, the coalition, supported by WHO data, argues that this rate is insufficient to significantly impact health.
Alhassan Umar, co-chair of the coalition and President of the Nigerian Cancer Society, advocates for increased SSB taxes to bolster the health budget and alleviate the strain on Nigeria’s health system. This move, he believes, will propel Nigeria towards achieving Universal Health Coverage (UHC).
With Nigeria being Africa’s largest consumer of soft drinks and the fourth highest globally, the implications of such a tax hike could be substantial, potentially setting a precedent for other countries grappling with similar health challenges.
