Health taxes

Health impact

Sugar-sweetened beverages (SSBs)

Taxing SSBs can lower consumption and encourage reformulation. It can reduce obesity, type 2 diabetes and tooth decay, especially for lower-income, less-educated and younger populations. Evidence shows that a tax on SSBs that increases the prices by 20% can reduce consumption by around 20%

Alcohol

Studies show that increasing the price of alcohol through higher taxes can reduce alcohol consumption and its related harms, and prevent drinking initiation.

On the different types of taxes, excise taxes are the most important for promoting health because they change the cost of the taxed product relative to other goods.

Sugar-sweetened beverages (SSBs)

 Fiscal policies that lead to at least a 20% increase in the retail price of sugary drinks would result in significant  reductions in consumption of such products.

Alcohol

• Health taxes are imposed on products that have a negative public health impact (e.g. taxes on tobacco, alcohol, sugar-sweetened beverages, fossil fuels). 
• These taxes result in healthier populations and generate revenues for the budget even in the presence  of  illicit trade/evasion.
• These are progressive measures which benefit low-income populations relatively more, once health care costs and health burden are taken into account