World Health Organization Proposes 50% Tax Hike on Alcohol — But Will the US Enact It?

The logo and building of the World Health Organization (WHO) headquarters in Geneva, Switzerland, April 15, 2020. (Photo: Martial Trezzini/Keystone via AP, file)

The World Health Organization has launched a bold push encouraging the world’s countries to hike taxes on alcohol, sugary drinks and tobacco by 50% over the next decade.

On Tuesday, WHO unveiled its “3 by 2035” initiative at the UN Finance for Development conference in Seville, Spain. Its objective — the “ambitious but achievable goal” of raising $1 trillion in public revenue through a combination of education and legislation. The plan lays out a tentative roadmap that world leaders are encouraged to follow, hinging around three key benchmarks. Cutting harmful consumption by reducing affordability, raising revenue to fund health and development and building broad political support across ministries, civil society and academia.

The meat and gravy of the idea revolves around statistics. According to a study cited by WHO, a one-time 50% price increase on tobacco, alcohol and sugary drinks could potentially prevent 50 million premature deaths over the next 50 years. The report draws inspiration from the successes of tobacco taxes, which were raised by nearly 140 countries between 2012 and 2022.

“Health taxes are one of the most efficient tools we have,” Dr. Jeremy Farrar, Assistant Director-General of Health Promotion and Disease Prevention and Control at WHO, remarked.  “They cut the consumption of harmful products and create revenue governments can reinvest in health care, education, and social protection. It’s time to act.”

Whether or not legislators will take heed is yet to be seen. Particularly in the United States.

Over the past year, federal alcohol guidance has emerged as a hotly contested issue among politicians and public health officials. The topic drew widespread attention in January, when an advisory commissioned by the U.S Department of Health and Human Services suggested that alcohol use was linked to at least seven types of cancer. Former U.S. Surgeon General Dr. Vivek Murthy urged Congress to mandate updated labels with a warning — once again, taking note from reforms in the tobacco market.

There was immediate pushback. Rep. James Comer (R-KY) accused the Biden Administration of promoting an “unscientific, predetermined narrative” in the weeks before Donald Trump took office. Weeks earlier, over 100 Republican and Democratic Congress members signed a letter urging the government to pause a similar study, citing concerns over “conflict of interest.”

It’s unclear what stance the HHS, now under the leadership of Robert F. Kennedy Jr., will adopt. Last month, Reuters reported that the organization is expected to suspend its recommendation that Americans limit alcohol consumption to two or fewer drinks per day. According to anonymous sources interviewed by the outlet, the HSS may replace the guidance with a brief statement encouraging adults to drink in moderation.

If the federal government is preparing to loosen alcohol guidelines, it’s highly unlikely that a tax hike is anywhere near consideration. The prospect is doubly implausible in light of President Trump’s so-called Big Beautiful Bill, which is projected to implement sweeping tax cuts to the tune of $4 trillion. House Republicans are expected to pass the bill by July 4.

Elsewhere, WHO’s 50% tax push may find fertile ground. The organization is quick to cite the successes of Lithuania, which increased its alcohol tax in 2017 in an attempt to drive down consumption. The country reportedly generated over US$104 million in additional public revenue over the span of two years. Within the same time frame, alcohol-related deaths reportedly dropped from 23.4 per 100,000 to 18.1 per 100,000.