Health Promotion Taxes Can Deliver Better Health and Stronger Communities
Countries across the Americas have a major opportunity to improve people’s health, prevent alcohol harm, and generate revenue for public priorities. New evidence from the Pan American Health Organisation (PAHO) shows that alcohol taxes in the region remain too low to meaningfully lower alcohol consumption and prevent and reduce the wide range of harms caused by alcohol.
The findings come from two new PAHO reports examining taxes on alcoholic products and sugar-sweetened beverages. The reports conclude that current tax levels across the Americas fall below global averages, limiting the impact of one of the most cost-effective tools available to promote health and prevent noncommunicable diseases.
PAHO’s findings arrive at a time when countries in the Americas continue to experience some of the highest levels of alcohol consumption in the world. The burden caused by alcohol harm on people, families, communities, health systems, and economies remains substantial.
Alcohol Taxes Lag Behind Global Standards
PAHO found that alcohol taxes across the Americas remain below global averages.
- For beer, the median total tax level is 25.5%, compared with a global median of 29.4%.
- For spirits, the average tax level is 31.5%, well below the global median of 38.7%.
According to PAHO, these sub-standard alcohol tax levels undermine the ability of governments to reduce population-level alcohol consumption and prevent alcohol harm – something countries committed to with the adoption of the Global Alcohol Action Plan.
Dr. Anselm Hennis, Director of PAHO’s Department of Noncommunicable Diseases, said that many countries have not designed alcohol taxes according to international best practices and that tax levels remain too low to significantly influence consumption, reduce health risks, and deliver the full health and fiscal benefits that health promotion taxes can provide.
In many countries of the Americas, existing taxes have not been designed in line with international best practices and remain too low to meaningfully influence consumption patterns, reduce exposure to health risks, or generate the level of health and fiscal gains that effective health taxes can deliver,” said Dr. Anselm Hennis, according to Kaieteur News.
Dr. Anselm Hennis, Director, Department of Noncommunicable Diseases, PAHO
High Alcohol Consumption Continues to Fuel Harm
Reports highlight that the Americas, particularly Latin America and the Caribbean, face some of the highest levels of alcohol consumption globally.
Alcohol contributes to a wide range of serious harms. For example, alcohol fuels liver disease, cancer, cardiovascular disease, injuries, violence, and premature mortality.
During a regional webinar organised by PAHO and Johns Hopkins University, experts highlighted that alcohol accounts for approximately 5.5% of deaths in the Americas.
The webinar also emphasised that noncommunicable diseases remain the leading cause of death and disability across the region. Alcohol use, alongside tobacco use and unhealthy diets, remains a major risk factor driving this disease burden.
Why Alcohol Taxes Matter
Health promotion taxes serve two important purposes.
First, they help reduce alcohol consumption by increasing prices and reducing affordability. Lower affordability leads to lower consumption, which helps prevent disease, disability, and premature death.
Second, they generate government revenue that can support health systems and other social priorities.
Alcohol taxation is a fiscal policy and a powerful, proven tool for transforming societies. The full potential of raising alcohol excise taxation is best captured in its quadruple win:
- Prevent and reduce harm: Raising alcohol taxes is the single most cost-effective alcohol policy solution to directly lower population-level alcohol consumption and the wide range of harms and costs it causes. It prevents suffering, saves lives, and protects families and communities.
- Generate revenue: Alcohol taxation is a cost-effective measure for governments to increase domestic revenues. The potential of alcohol taxation to bring in reliable and substantial funds often exceeds those from tobacco or sugar-sweetened beverage taxes.
- Finance health and development priorities: The revenues raised can be (soft) earmarked or strategically allocated to finance health systems, prevention and health promotion programs, education, or other vital public services, such as better enforcement and scientific evaluation of alcohol policies. This way alcohol taxation helps fund public goods and human development.
- Advance health equity and social justice: Alcohol harm disproportionately affects people in at-risk and marginalised communities with low socio-economic status. Preventing and reducing alcohol harm benefits them the most and redirecting revenues toward public goods contributes to reducing health inequalities. Alcohol taxation is a rights-based, pro-equity policy that promotes social justice and strengthens the social contract by prioritizing people’s welfare over alcohol industry profit interests.
PAHO described health promotion taxes as one of the most cost-effective public health measures available. Experts participating in the webinar highlighted what they called a “double positive impact” of health taxes: generating additional revenue while reducing healthcare and social costs associated with harmful products.
The economic burden of alcohol harm extends far beyond healthcare spending. Webinar speakers noted that productivity losses caused by alcohol harm even exceed health system costs caused by alcohol. This means that alcohol harm causes costs at all levels: for people, households, families, communities, businesses, and wider society.
Tax Policy Gaps Undermine Health Gains
PAHO identified several shortcomings in current tax policies.
Many countries continue to apply low tax rates, maintain narrow tax bases, or fail to adjust taxes regularly for inflation.
For example, without regular inflation adjustments, alcohol taxes lose value over time and alcoholic products become more affordable. This undermines efforts to prevent alcohol harm and promote public health.
Experts also highlighted flaws in alcohol tax design. In some countries, lower tax rates apply to certain alcoholic products despite the fact that health risks depend on alcohol consumption rather than beverage type.
The webinar further highlighted concerns about excessive reliance on ad valorem taxes. Public health experts noted that specific taxes often work better because they raise the price of cheaper products more effectively. These lower-cost alcoholic products are frequently more affordable to young people.
Countries Are Showing What Progress Looks Like
Several countries in the region have recently taken action to improve health promotion taxes.
- For instance, Barbados and Colombia introduced new taxes on unhealthy products.
- Dominica increased taxes on alcohol, tobacco, and sugary drinks.
The webinar also highlighted tobacco tax increases in Trinidad and Tobago, Mexico, Brazil, and Jamaica.
One of the best examples came from Colombia. Between 2016 and 2023, tobacco consumption declined by 37.6% while tobacco tax revenues increased by 43%.
Thiis experience is prove that well-designed health promotion taxes can simultaneously reduce population-level consumption of a health harming product and increase public revenue.
Growing International Support for Alcohol Taxation
The growing focus on alcohol taxation reflects a broader international movement to use evidence-based fiscal policies to promote health and development.
This can be shown through a growing number of countries raising alcohol taxes as well as through public opinion surveys.
In 2025, Movendi International documented the countries from around the world taking initiatives for raising alcohol taxes.
- Worldwide: “Advocacy Win: Alcohol Taxation Is Included in FfD4 Outcome Document”
- Bhutan: “Bhutan Is Set To Raise Alcohol and Tobacco Excise Taxes“ and “Bhutan Raises Alcohol, Tobacco Taxes to Promote Health, Prevent Chronic Disease“
- Colombia: “Colombia Plans to Raise Alcohol Taxes As Part of Ambitious Overall Tax Reform”
- Egypt: “Egypt Reforms Alcohol Taxation to Increase Revenue”
- Great Britain: “The Positive Effects of the UK Wine Duty Improvements“ and “England, UK: Evidence Shows Alcohol Taxes Work“
- Namibia: “Namibia Plans Alcohol, Tobacco Tax Increases to Promote Health, Protect Youth”
- New Mexico, USA: “How Raising Alcohol Taxes Would Benefit New Mexico”
- South Africa: “South Africa: Alcohol Tax Increases Work, As Science Exposes Industry Lies“ and “Inside South Africa’s Plan to Raise Alcohol Excise Taxes“ and “South Africa: Government Set to Raise Alcohol Tax – Why It’s a Good Idea“
- Vietnam: “Viet Nam Puts Alcohol Tax Increases Into Effect”
Public support for alcohol policy is both high and widespread – and it matters. Governments are more likely to act when they know people back them, and policies work better when they reflect shared values of fairness, health, and responsibility.
The new Movendi International report “People Want Higher Alcohol Taxes. Worldwide Data on Public Support for Alcohol Taxation” shows that public support for alcohol policy is broad, durable, and actionable. Across regions and income levels, people back fair, effective alcohol policy solutions – especially when framed around health, justice, and societal benefit. This evidence overturns the industry-driven myth that alcohol taxation and other Best Buys are “unpopular,” and it gives governments a clear mandate to act.
Global picture. A Gallup–WHO survey (2021–2022) finds 69% support for higher alcohol taxes across five diverse countries (Jordan 92%, Tanzania 75%, India 66%, Colombia 63%, United States 54%). RESET Alcohol Initiative polling echoes this pattern in Brazil, Colombia, Kenya, Mexico, the Philippines, and Sri Lanka, where majorities want government action on alcohol harm and support tax increases – especially when revenues fund health, education, or social programs.
Other studies and surveys also illustrate this reality.
For example, research across seven countries shows general support for a wide range of alcohol policies. In Australia, support for alcohol tax reforms rose significantly when revenues were earmarked for health and prevention – with up to 79% backing measures like a minimum price for bottled alcohol. In Canada, support for lowering alcohol taxes fell steadily over time, while backing for the status quo or increases grew. Surveys in Czech Republic, Germany, South Korea, Hong Kong, Sweden, the UK, and the US all show majority support for alcohol taxation, particularly when linked to protecting health or funding essential services.
Country evidence shows that support is consistently high – especially when policies are linked to fairness and health.
An Opportunity to Advance Health and Development
PAHO is calling on countries to improve pro-health tax policies through higher and more effective tax rates, broader product coverage, better tax structures, regular inflation adjustments, robust implementation, and ongoing monitoring.
PAHO has also committed to providing technical support to Member States seeking to improve health promotion tax implementation.
The message from the new reports is clear. Countries across the Americas already use alcohol taxes, but current levels remain too low to fully protect people from alcohol harm.
Improving alcohol taxation offers an opportunity to prevent disease, save lives, strengthen health systems, generate public revenue, and advance health and development for all.
Sources
Kaieteur News: “PAHO calls for higher taxes on alcohol, ‘sweet drinks’“
Pan American Health Organization (PAHO): Press Release
Pan American Health Organization (PAHO): “Taxes on Alcoholic Beverages in the Americas: Regional Report 2025“
Trinidad and Tobago Guardian: “PAHO wants higher taxes to curb harmful consumption of alcohol and sugary drinks“
Curaçao Chronicle: “Health tax levels in the Americas remain too low to curb harmful consumption of alcohol and sugary drinks”
YouTube (PAHO Webinar): “Progress and Challenges in Health Taxes in the Americas”