Tobacco, alcohol, sugary drinks: WHO urges countries to strengthen taxation to benefit health

Several emerging economies have undertaken significant reforms to their tobacco taxation in recent years. A new independent analysis of 15 countries shows that all have improved their cigarette taxation systems between 2009 and 2025.[1]. The most significant results are observed in countries that have significantly increased taxes, simplified their tax systems, and ensured that cigarettes do not gradually become more affordable with rising incomes.

This analysis comes as the World Health Organization (WHO) encourages states to use health taxes to increase the real prices of tobacco, alcohol, and sugary drinks by 2035. Its "3 by 35" initiative aims to reduce consumption of these products, which are linked to numerous non-communicable diseases, while generating revenue that can be used for health and development. According to the WHO, one-off, limited tax adjustments can be absorbed by inflation or circumvented by industry strategies. The organization therefore advocates for regular and substantial increases to gradually reduce the affordability of tobacco, alcohol, and sugary drinks.

Tobacco tax increases are particularly effective in emerging economies.

In the 15 countries studied, adult smoking prevalence has decreased significantly in several cases, and this decline is notably associated with strong fiscal policy: 43 % in India, 37 % in Pakistan, 34 % in Brazil and 29 % in Bangladesh and the Philippines.

The example of tobacco tax policy in the Philippines illustrates the effectiveness of tax increases for both health and tax revenue. Following the 2013 reform, the real price of the best-selling cigarette brand rose sharply. Analysis estimates this increase at 638 % over the period 2008-2024. Simultaneously, smoking prevalence decreased by approximately one-third between 2010 and 2025. The Philippines allocated a portion of the additional revenue from tobacco taxes to fund universal health coverage. This approach demonstrates the potential of using taxes to both reduce the consumption of harmful products and fund public priorities. In Ukraine, the real price of the best-selling cigarette brand is projected to increase by 659 % between 2008 and 2024 due to tax increases. In Russia, the real price of the best-selling brand reportedly increased by 200 % over the same period due to tax hikes. Russia, the Philippines, and Ukraine all saw a significant decrease in smoking rates after substantial tax and price increases. These policies of significantly raising taxes were coupled with other anti-smoking measures.

For these tax policies to be effective, the authors point out that four essential characteristics must be taken into consideration: substantial and regular increases, simplified tax structures, increased use of specific taxes, and automatic adjustment to inflation and changes in income.

Sugary drinks and alcohol: still limited taxation

This study reinforces the scientific findings disseminated by the WHO. The effectiveness of tax policies applies not only to tobacco products but also to other products posing significant risks to public health. The WHO believes that governments have considerable room for improvement regarding the taxation of sugary drinks and alcohol. At least 116 countries apply a national excise tax on one or more categories of sugary drinks. However, the median share of this tax in the retail price of a comparable sugary soft drink is only 2.4%. Between 2022 and 2024, sugary drinks became less affordable in only 34 countries, while they became more affordable in 62 others.

About a quarter of countries with these tax systems calculate their taxes based on sugar content. However, this type of tax can encourage consumers to choose less sugary products and incentivize manufacturers to change the composition of their products. Only 14 of these countries automatically update their specific taxes, which exposes the real price of the product to erosion due to inflation. Some countries allocate a portion of the revenue from sugary drinks to health initiatives. Azerbaijan, France, Hungary, the Philippines, and Tanzania, for example, allocate a portion of this revenue to expanding health coverage. Panama, Russia, and Zimbabwe specifically target programs dedicated to combating cancer, diabetes, and other non-communicable diseases. Poland and Portugal, on the other hand, use this revenue for more general health purposes.

Regarding alcohol, at least 167 countries apply national excise taxes. Adjusted for population size, these taxes represent approximately 21% of the retail price of beer and 28% of the retail price of spirits. Between 2022 and 2024, beer became less affordable in only 31% of countries and spirits in 22%. Fewer than a quarter of the countries applying specific taxes on alcohol plan for regular automatic increases, while at least 25 countries continue to exempt wine from excise taxes.

The WHO calls on countries to pursue the "3 by 35" target.«

According to the WHO, the reforms undertaken over the past 15 years demonstrate that tax changes are possible, even in complex economic and political contexts. However, the organization believes that limited increases are insufficient to reduce access to these products.

The "3 by 35" initiative, launched in July 2025, sets a target of increasing real prices by 50% by 2035.. Globally, this would mean, on average, raising the nominal price of a pack of cigarettes from $4.70 to $9.60, a 330ml beer from $1.30 to $3.10, and a 330ml soft drink from $0.90 to $1.90. In low-income countries, the necessary increases would be greater, with prices more than tripling.

The WHO calls on governments to establish long-term tax trajectories, automatically adjust taxes to inflation and income growth, reduce or even eliminate exemptions and tax disparities between lower-priced products, and ensure consistent coverage of different categories of tobacco, alcohol, and sugary drinks. In this context, the WHO has launched a platform dedicated to the "3 by 35" initiative, designed to support its implementation, facilitate the sharing of experiences among countries, strengthen national advocacy, and mobilize international partnerships around taxation designed for health. The organization also plans to publish national case studies showcasing the reforms undertaken, their results, and the lessons learned, highlighting the benefits for both health and national resources.

" The evidence is clear: when governments significantly raise the price of harmful products, consumption decreases, lives are saved, and public revenue increases. »,« said Dr. Etienne Krug, Director of the Department of Health Determinants, Promotion and Prevention at the WHO.« Minor and irregular tax adjustments are too easily absorbed by inflation or manipulated by industry. Countries need predictable and ambitious increases that gradually make tobacco, alcohol, and sugary drinks less affordable. »[2]

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[1]Rajeev Cherukupalli, Excise Taxes in Emerging Economies: Progress on Cigarette Taxation in the Bloomberg Initiative, 2009-2025, Tax Notes International, Volume 122, Number 10, published on June 8, 2026, accessed on October 1, 2026

[2]Fifteen years of tobacco tax reform show countries can make harmful products less affordable, World Health Organization, published September 30, 2026, accessed October 1, 2026

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