The Pan American Health Organization Pan American Health Organization has reported that health taxes on alcohol and sugar-sweetened beverages across the Americas remain insufficient to meaningfully reduce harmful consumption and address rising rates of noncommunicable diseases.
According to newly released PAHO reports, tax levels on alcoholic beverages and sugary drinks are generally below global averages, limiting their effectiveness as public health tools. For example, the median tax burden on beer in the region is 25.5%, compared to a global median of 29.4%, while spirits are taxed at 31.5%, below the global average of 38.7%. Sugar-sweetened beverages face a median tax rate of 17.1%, with several countries still applying no tax at all.
The reports highlight that the Americas, particularly Latin America and the Caribbean, experience some of the highest consumption levels of alcohol and sugary drinks globally. This is contributing to high rates of obesity, diabetes, cardiovascular disease, and other chronic health conditions, which place increasing pressure on healthcare systems.
PAHO emphasizes that health taxes are among the most effective policy tools for reducing consumption of harmful products while also generating government revenue that can be reinvested in public health initiatives. However, the organization notes that many countries have weak tax structures, narrow coverage, or fail to adjust tax rates for inflation, reducing long-term effectiveness.
Some countries have recently taken steps to strengthen policy measures, including introducing or increasing taxes on alcohol, tobacco, and sugary drinks. PAHO calls for broader adoption of well-designed tax systems, regular updates to tax rates, and expanded product coverage to improve public health outcomes.
The organization continues to advocate for stronger fiscal policies across the region, supported by technical guidance and evidence-based reforms, to reduce risk factors and address the growing burden of noncommunicable diseases.
