The World Health Organization has once again called on governments around the world to significantly increase taxes on alcoholic beverages.
In a pair of global reports published this week, the WHO claimed that alcohol prices in most countries have failed to keep pace with inflation and income growth, contributing to higher consumption levels and increased rates of noncommunicable diseases, injuries and violence. While 167 countries levy some form of alcohol tax, the organisation noted that since 2022, alcohol has become more affordable in many markets.
According to the WHO, global excise tax shares remain low, with median tax levels accounting for around 14% of beer prices and 22.5% of spirits. Wine remains untaxed in at least 25 countries, predominantly in Europe.
The agency also highlighted that few governments routinely index alcohol taxes to inflation, resulting in real prices being allowed to fall over time.
The WHO is urging policymakers to strengthen and redesign alcohol taxes as part of its ‘3 by 35’ initiative, which was announced last year and aims to increase the real prices of alcohol, tobacco and sugary drinks by 2035. It argues that higher taxes could reduce harmful consumption while also generating additional revenue for health systems, which are facing growing financial pressure.
