Philadelphia, Pennsylvania and Berkeley, California already do it. Now, the World Health Organization (WHO) wants it done all over the world.

A 20 percent tax

In response to a growing global obesity problem – one closely related to the rise in type 2 diabetes – the WHO is calling for governments to enact at least a 20 percent tax on sugary drinks in an effort to curb consumption of the beverages.

The U.S. is not the only country grappling with an obesity epidemic. In 2014, more than 1 in 3 (39%) adults worldwide aged 18 years and older were overweight. Worldwide prevalence of obesity more than doubled between 1980 and 2014, with 11% of men and 15% of women (more than half a billion adults) being classified as obese.

And obesity is not only affecting adults. An estimated 42 million children aged under 5 years were overweight or obese in 2015, an increase of about 11 million during the past 15 years. Almost half (48%) of these children lived in Asia and 25% in Africa.

1.5 million diabetes deaths

The number of people living with diabetes has also been rising, from 108 million in 1980 to 422 million in 2014. The disease was directly responsible for 1.5 million deaths in 2012 alone.

The WHO thinks that making sugary drinks more expensive will help lower those numbers by causing people to take in fewer “free sugars” and calories overall, resulting in improved nutrition and lower rates of obesity, diabetes and tooth decay. Free sugars refer to monosaccharides (such as glucose or fructose) and disaccharides (such as sucrose or table sugar) added to foods and drinks by the manufacturer, cook, or consumer, and sugars naturally present in honey, syrups, fruit juices, and fruit juice concentrates.

Cutting healthcare costs

“Consumption of free sugars, including products like sugary drinks, is a major factor in the global increase of people suffering from obesity and diabetes,” says Dr Douglas Bettcher, Director of WHO’s Department for the Prevention of NCDs. “If governments tax products like sugary drinks, they can reduce suffering and save lives. They can also cut healthcare costs and increase revenues to invest in health services.”

According to the new WHO report, national dietary surveys indicate that drinks and foods high in free sugars can be a major source of unnecessary calories in people’s diets, particularly in the case of children, adolescents and young adults.

It also points out that some groups, including people living on low incomes, young people and those who frequently consume unhealthy foods and beverages, are most responsive to changes in prices of drinks and foods and, therefore, gain the highest health benefits.

According to a recent WHO report:

• Subsidies for fresh fruits and vegetables that reduce prices by 10–30% can increase fruit and vegetable consumption.
• Taxation of certain foods and drinks, particularly those high in saturated fats, trans fat, free sugars and/or salt appears promising, with existing evidence clearly showing that increases in the prices of such products reduces their consumption.
• Excise taxes, such as those used on tobacco products, that apply a set (specific) amount of tax on a given quantity or volume of the product, or particular ingredient, are likely to be more effective than sales or other taxes based on a percentage of the retail price.
• Public support for such tax increases could be increased if the revenue they generate is earmarked for efforts to improve health systems, encourage healthier diets and increase physical activity.

A number of countries have taken fiscal measures to protect people from unhealthy products. These include Mexico, which has implemented an excise tax on non-alcoholic beverages with added sugar, and Hungary, which has imposed a tax on packaged products with high sugars, salt or caffeine levels.

Countries, such as the Philippines, South Africa and the United Kingdom of Great Britain and Northern Ireland have also announced intentions to implement taxes on sugary drinks.