The World Health Organization urges nations to rethink their sugary drink and alcohol tax designs. The World Health Organization (WHO) is urging countries around the world to not only raise taxes on sugary drinks and alcohol but also to make sure the taxes are designed properly. Because even high taxes won’t cut consumption if the rules are weak or confusing, and South Africa may be behind on some key points.
It’s not just about how much you charge. According to WHO, the way a tax is structured can determine whether it actually changes people’s behaviour or just brings in money for the government. Good tax design should: A well-designed tax helps people drink and eat less sugar or alcohol while still raising money for public health.
What is noteworthy is that it is based on how much sugar is in the drink, rather than the drink’s price. Drinks with more than 4 grams of sugar per 100 ml get taxed. Some drinks, like certain fruit juices and milk drinks, are not taxed.
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The tax doesn’t automatically increase with inflation, which means over time it becomes less effective. Taxes on alcohol vary. Spirits are taxed by the litre of pure alcohol and beer and wine are taxed by volume.
Cheaper, high-alcohol drinks may still be relatively affordable. Like sugary drinks, the tax doesn’t adjust automatically with inflation, and there’s no minimum pricing in place. When measured against the World Health Organization’s tax design principles, South Africa only partly complies.
The country does tax sugary drinks based on sugar content and taxes some alcohol according to alcohol strength. Both of these align with WHO’s recommendation to charge by harmful content rather than just price. However, coverage remains incomplete, with certain products still falling outside the net. These taxes are not automatically adjusted for inflation, which weakens their impact over time.
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