The World Health Organization (WHO) said sugary drinks and alcohol are becoming cheaper relative to other goods, urging governments to increase taxes.
The WHO warned that consistently low taxes on these products in most countries are contributing to rising rates of obesity, diabetes, heart disease, and cancer.
It said weak tax systems allow harmful products to stay affordable, while health systems face growing financial pressure from preventable non-communicable diseases.
The agency noted that although sugary drinks and alcohol generate billions of dollars in profits, governments receive only a small share through health-focused taxes. As a result, societies are left to deal with the long-term health and economic costs.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said WHO Director-General Tedros Adhanom Ghebreyesus.
He added that higher taxes on tobacco, sugary drinks, and alcohol can reduce harmful consumption while generating funds for essential health services.
Speaking at a press conference, Tedros said that for poorer countries struggling as international aid declines, such taxes could help support a shift toward sustainable, self-reliant health systems.
WHO Assistant Director-General for health promotion, disease prevention, and care, Jeremy Farrar, said there is clear evidence that higher taxes on tobacco reduce consumption, and sugary drinks should be taxed in the same way.