The World Health Organization is releasing today new data that show a low global rate of taxes being applied to unhealthy products such as alcohol and sugary sweetened beverages (SSBs). The findings highlight that the majority of countries are not using taxes to incentivize healthier behaviours. To help support countries WHO is also releasing a technical manual on alcohol tax policy and administration. Globally 2.6 M people die from drinking alcohol every year and over 8 M from an unhealthy diet, implementing tax on alcohol and SSBs will reduce these deaths.
Half of all countries taxing SSBs are also taxing water, which is not recommended by WHO. Although 108 countries are taxing some sort of SSB, globally, on average excise tax, a tax designated for a specified consumer product, represents just 6.6% of the price of soda. 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. Globally, on average, the excise tax share in the price of the most sold brand of beer is 17.2%. For the most sold brand of the most sold spirits type, it is 26.5%.
A 2017 study shows that taxes that increase alcohol prices by 50% would help avert over 21 M deaths over 50 years and generate nearly US$17 trillion in additional revenues. This is equivalent to the total government revenue of 8 of the world's largest economies in 1 year.
Taxing unhealthy products creates healthier populations. 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.
Countries like Lithuania, that increased alcohol tax in 2017 to drive down consumption have decreased deaths from alcohol related diseases Lithuania increased alcohol tax revenue from 234 M euros in 2016 to 323 million euros in 2018 and saw alcohol-related deaths drop from 23.4 per 100 000 people in 2016 to 18.1 per 100 000 people in 2018.
Research shows that taxing alcohol and SSBs helps cut down use of these products and gives companies a reason to make healthier products. While at the same time tax on these products help prevent injuries and noncommunicable diseases NCDs such as cancers, diabetes and neurological and cardiovascular or heart diseases.
See full report HERE
Source: WHO
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This article was compiled by Admin CTO Vietnam Network.
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