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WHO calls for higher taxes as harmful products stay affordable

Business

Ntsoaki Motaung
Ntsoaki Motaung
Ntsoaki Motaung is an award-winning health journalist from Lesotho, specializing in community health stories with a focus on sexual and reproductive health and rights, as well as HIV. She has contributed to platforms like "Be in the KNOW," highlighting issues such as the exclusion of people with disabilities from HIV prevention efforts in Lesotho. In addition to her journalism, Ntsoaki serves as the Country Coordinator for the Regional Media Action Plan Support Network (REMAPSEN). She is also a 2023 CPHIA Journalism Fellow.

A global public health crisis is deepening as sugary drinks and alcoholic beverages become increasingly affordable across the world, prompting the World Health Organisation (WHO) to call for urgent government action.

New reports released this month show that low and poorly designed taxes are failing to keep pace with inflation, effectively making these products cheaper in real terms. This trend is driving higher consumption and contributing to rising rates of obesity, diabetes and cardiovascular disease, particularly in low- and middle-income countries.

The WHO is urging governments to strengthen so-called health taxes, describing them as one of the most effective tools available to prevent disease and save lives. By raising the prices of tobacco, alcohol and sugary drinks, countries can curb harmful consumption while generating much-needed revenue for strained health systems.

“Many countries still have weak tax systems that allow these products to remain affordable even as health systems face growing pressure from preventable illnesses,” the WHO said.

In Lesotho, the situation reflects these global challenges. According to the WHO data, Lesotho is among the countries that apply excise taxes to alcoholic beverages and sugary drinks to help manage public health.

However, like many of its neighbours, the real value of these taxes is often eroded by rising costs of living. For instance, while Lesotho has a tax on sugary sodas, it does not yet extend these health taxes to other high-sugar products like 100 percent fruit juices or sweetened milk drinks, which are often perceived as healthier but still contribute to disease.

Furthermore, alcohol in the region remains highly affordable. While Lesotho does levy taxes on beer and spirits, the total tax share, the portion of the price that goes to the the government is relatively low compared to the health costs associated with alcohol use.

The WHO highlights that when alcohol is cheap, it leads to higher rates of violence and injuries, placing a heavy burden on the public and the economy.

To address these issues, the WHO has launched the 3 by 35 initiative. This plan aims to help countries like Lesotho redesign their tax systems to ensure that the prices of tobacco, alcohol, and sugary drinks increase steadily through 2035.

By making these products less affordable over time, the initiative seeks to protect the next generation from the long-term effects of noncommunicable diseases.

Health officials emphasise that the goal is not just to raise money, but to create a healthier society.

For Lesotho, strengthening these taxes and potentially earmarking the revenue specifically for healthcare could provide the funds needed to treat the very diseases these products cause.

Summary

  • While Lesotho has a tax on sugary sodas, it does not yet extend these health taxes to other high-sugar products like 100 percent fruit juices or sweetened milk drinks, which are often perceived as healthier but still contribute to disease.
  • While Lesotho does levy taxes on beer and spirits, the total tax share, the portion of the price that goes to the the government is relatively low compared to the health costs associated with alcohol use.
  • The WHO highlights that when alcohol is cheap, it leads to higher rates of violence and injuries, placing a heavy burden on the public and the economy.
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