South Africa: WHO's 2025 Global Tax Reports: A Call to Action for Healthier Lifestyles
The Issue:
Alcohol and sugar-sweetened beverages are becoming more affordable, potentially leading to increased consumption and a strain on healthcare systems, according to the World Health Organization's (WHO) 2025 reports. But here's the controversial part: the reports also suggest that stronger excise taxes could be the key to reformulation and a healthier future.
The Details:
The WHO's Global Report on Alcohol Taxes, 2025, and Global Report on Sugar-Sweetened Beverage Taxes, 2025, reveal a concerning trend. Excise taxes on alcoholic drinks and sugary drinks are often too low and don't keep up with inflation in many countries. This affordability factor is driving up consumption, contributing to both communicable and non-communicable diseases, and putting extra pressure on already overburdened healthcare systems.
The reports highlight a critical design flaw: the exclusion of high-sugar beverages from sugar taxes and the limited use of automatic inflation adjustments. This means that producers can continue to produce sugary drinks without facing significant financial consequences, perpetuating the problem. The WHO concludes that higher excise taxes can incentivize producers to reduce sugar content, leading to healthier alternatives.
The Impact:
These findings have significant implications for governments and corporations alike. As health concerns rise, revenue authorities may be encouraged to take a more proactive approach to excise taxes, potentially leading to increases in tax rates and/or structural changes in the industry. Corporations operating in the alcohol and beverage sectors should be prepared for these changes and adapt their strategies accordingly.
The Way Forward:
The WHO's reports serve as a wake-up call, urging governments and businesses to prioritize public health. By implementing stronger excise regimes, we can make a tangible difference in reducing the burden of chronic diseases and creating a healthier future for all. This is a call to action that demands our attention and collaboration.
This legal update was contributed by Limani Mangaliso, Trainee Solicitor.
