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About
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About
Health taxes overview
Why Health Taxes?
Health taxes are taxes imposed on unhealthy products, such as tobacco, alcohol, or sugar-sweetened beverages. Consumption of these products is linked with many non-communicable diseases, such as heart disease, cancer, obesity, and diabetes.
The primary purpose of health taxes is to reduce consumption of these unhealthy products, by design they change the relative price of the targeted products relative to other products. When well designed — with a focus on the right rates, structures, base and supported by complementary administrative measures — they constitute one of the most cost-effective ways to curb the use of unhealthy products and save lives while raising much-needed revenue.
How Is the World Bank Supporting the Implementation of Health Taxes?
Government decisions on health taxes need to consider the potential impact on revenue, health, poverty incidence and benefits for redistributive programs. To do this effectively, multisectoral expertise is needed across fiscal policy, tax design and tax administration, health and nutrition, poverty and equity, and when relevant agriculture, social protection and other fields. The World Bank Group is one of the few development organizations that has such a wide range of expertise under one roof. The World Bank provides both analytical work and financing for projects that strengthen health taxes.
The Global Tax Program, an umbrella trust fund hosted by the Macroeconomics, Trade & Investment global practice, also supports implementation of health taxes.
How is the World Bank Group supporting the implementation of Health Taxes
Our Partners
The World Bank recognizes the added value of working with partners to advance health tax implementation at the country level, and to develop important tools and research..
Among others, the World Bank is part of the Platform for Collaboration on Tax (PCT); the UN Interagency Task Force on NCDs (UNIATF-NCDs) under the WHO; the P4H Network; the Sustainable Financing for Health Accelerator (SFHA) under the auspices of the Global Action Plan for Healthy Lives and Well-being for All (SDG GAP); and the health taxes inter-agency working group (IAWG) which is an informal partnership of co-equal agencies. All these collaboratives bring together agencies with a common goal of advancing the health tax agenda.
SSB Partners
Recent Blogs
Smart health taxes: A win for public health and the economy
woman breaking apart a cigarette
By Danielle Bloom, Agnes Ccouffinhal & Ceren Ozer
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Diet drinks may be harmful to health: what does it mean for soda taxes?
https://blogs.worldbank.org/en/health/diet-drinks-may-be-harmful-health-what-does-it-mean-soda-taxes
Soft drinks
by Kate Mandeville and Libby Hattersley
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Health taxes for healthier populations: Cost-effective policy to save lives
Health taxes for healthier populations: Cost-effective policy to save lives
by Juan Pablo Uribe, Marcello Estevão, Luis Felipe López-Calva, Arturo Herrera Gutierrez
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Smarter taxation can help boost government revenue and health outcomes
Smarter taxation can help boost government revenue and health outcomes
by Marcello Estevão
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Featured Publications on Health Taxes
For more resources on specific taxes, please see the dedicated sections (tobacco tax, alcohol tax, sugar-sweetened beverages (SSB) tax). |
The Global Tax Program Health Taxes Knowledge Note Series
The Global Tax Program Health Taxes Knowledge Note Series
The Global Tax Program Health Taxes Knowledge Note Series, produced by the Global Tax Program’s Health Tax Workstream, focuses on topics linked to implementation of health taxes, or excise taxes on tobacco, alcoholic drinks and sugar-sweetened beverages. The purpose of this series is to provide policy makers with an overview of relevant issues and feasible policy choices in setting health taxes based on questions that emerge from the field during health tax reforms.
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Knowledge Note: Health Earmarks and Health Taxes: What Do We Know?
Knowledge Note: Health Earmarks and Health Taxes: What Do We Know?
This knowledge brief reviews the concepts of earmarking and health taxes, global evidence using these polices, and their potential role in building more resilient health systems under COVID-19.
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Using Taxation to Address Noncommunicable Diseases: Lessons from Tonga
Using Taxation to Address Noncommunicable Diseases: Lessons from Tonga
This report presents findings and recommendations from a study on the use of fiscal policy on tobacco, alcohol, food and beverages in Tonga as a response to the noncommunicable disease crisis in the Pacific.
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Report: Taxes on Sugar-Sweetened Beverages: International Evidence and Experiences
Support for Sugary Drinks Taxes Taxes on Sugar Sweetened Beverages Summary of International Evidence and Experience
This evidence review is designed to support policy makers seeking to implement a tax on sugar-sweetened beverages (SSB). It synthesizes the latest global evidence of effectiveness of SSB taxes and summarizes international experiences with SSB taxation to-date.
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More Publications that Make the Case for Health Taxes
Old Scars, New Wounds? Public Financing for Health in Times of Covid-19 in the Asia-Pacific Region
Old scars new wound
This discussion paper focuses on the World bank’s South Asia and East Asia and the Pacific regions. Despite a rebound in economic growth following the pandemic, new geopolitical developments and macroeconomic shocks, as well as the lingering uncertainty of the Covid-19 pandemic pose further challenges to sustainable public financing for health. These recent challenges are superimposed on longer-term issues—aging, noncommunicable diseases, climate change, and future pandemic preparedness—which are shared across the Asia-Pacific, a dynamic region ranging from small Pacific Island states to the two most populous countries in the world. Leveraging health taxes is identified as a specific health reform opportunity, with country spotlights highlighting relevant successes and remaining challenges in this area, with a regional analysis on SSB taxes.
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Investing in Human Capital for a Resilient Recovery : The Role of Public Finance
This Approach Paper considers the role of public finance to build, protect and utilize human capital as countries seek to recover from the COVID-19 crisis and lay a foundation for inclusive, resilient and sustainable development.
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Obesity: Health and Economic Consequences of an Impending Global Challenge
Health and Economic Consequences of an Impending Global Challenge
This report lays out why overweight and obesity is a “ticking time bomb” with huge potential negative economic and health impacts, especially for the poor and people who live in low- or middle-income countries, dispelling the myth that it is a problem only in high-income countries and urban areas. The report also presents opportunities to address obesity, including fiscal policies such as taxation and subsidies.
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Investing in Human Capital for a Resilient Recovery : The Role of Public Finance
This report considers the role of public finance to build, protect and utilize human capital as countries seek to recover from the COVID-19 crisis and lay a foundation for inclusive, resilient and sustainable development. The paper defines the problem in relation to human capital outcomes amid the COVID-19 crisis and outlines three areas for action: policy priorities, governance, and fiscal space for building and utilizing human capital.
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From Double Shock to Double Recovery: Health Financing in the Time of COVID-19
From-Double-Shock-to-Double-Recovery-Health-Financing-in-the-Time-of-COVID-19
This series uses macroeconomic projections released by the International Monetary Fund to project the possible time path of health spending in 178 countries and territories. The analysis shows that despite a projected return to global economic growth from 2021, low- and lower-middle-income countries would, with few exceptions, struggle to maintain health spending at levels sufficient to continue combating the pandemic. The paper discussed a range of policy options that countries could use to increase the available domestic resources for health in times of economic crisis, including health taxes.
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Strengthening Domestic Resource Mobilization: Moving from Theory to Practice in Low-and Middle-Income Countries
Strengthening Domestic Resource Mobilization
This book reviews the trends in tax revenue collection in developing countries. It provides an overview of efforts to close the revenue gap, many of which have been supported by World Bank operations. An overview of tax policy and administration reform programs is presented, with an overview of outstanding issues that will shape the policy agenda in years ahead.
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Domestic Resource Mobilization for Increased Health Sector Fiscal Space and Universal Health Coverage
Domestic Resource Mobilization for Increased Health Sector Fiscal Space and Universal Health Coverage
This note provides guidance on how to carry out a “drill-down” examination of domestic resource mobilization for increased health sector fiscal space to ensure progress towards universal health coverage. It specifically aims to identify a given country’s most critical opportunities (and constraints) to increase domestically-resourced public financing for universal health coverage, including health taxes.
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Taxation and the Sustainable Development Goals Conference Report
Taxation and the Sustainable Development Goals Conference Report
The Platform for Collaboration on Tax — a partnership of the International Monetary Fund, the Organization for Economic Cooperation and Development, the United Nations, and the World Bank Group — brought together nearly 500 representatives from governments, academia, civil society, international organizations, private sector and regional groups to participate in its first Global Conference in New York (2018). This report presents key messages coming from the conference sessions.
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Transfer pricing and developing economies: a handbook for policy makers and practitioners
Transfer pricing and developing economies
This handbook is a product of the Global Tax Team in the Equitable Growth, Finance, and Institutions Vice Presidency. It adds to the tools at policy makers’ and administrators’ disposal to address this multifaceted challenge by providing useful insight into understanding the challenges in different country situations aa well as lessons learned.
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Further resources are available from the Platform for Collaboration on Tax, which includes links to the international toolkits on tax incentives, comparable (transfer) pricing and offshore transfer of assets.
Tobacco Taxes
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Tobacco Taxes
Tobacco taxes
Why Tax Tobacco?
Smoking-related illnesses remain the leading cause of preventable deaths worldwide. Tobacco use is a major risk factor for heart disease, lung disease, many cancers, and other diseases. Tobacco use and exposure to second-hand smoke kills more than eight million people worldwide annually Low- and middle-income countries have 80 per cent of the world’s 1.1 billion smokers, and more than 80 per cent of those dying from lung cancer by 2030 will be from these countries.
Raising tobacco excise taxes leads to decrease in tobacco use, improves the lives of people and generates additional revenues for governments. Tobacco taxes work best if implemented as part of a comprehensive tobacco control program.
Toolkit
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The World Bank Economics of Tobacco Toolkit (TOBACTAX Tool) is for people who want to research issues in the economics of tobacco control in a specific country. The six tools in this toolkit (Data / Demand / Taxes / Employment / Equity / Smuggling) aim to provide clear step-by-step guidance on what analysis to do, how to do it, and how to report and present the results. Each tool has been written and reviewed by experts in the field. All the tools are open-access and available online: |
Publication Highlight
Tobacco Tax Reform at the Crossroads of Health and Development: A Multisectoral Perspective
Tobacco Tax Reform at the Crossroads of Health and Development : A Multisectoral Perspective
This report provides decision support for policy makers on tobacco tax reform, as well as analytical and empirical tools for using tobacco excise taxes to save lives and increase government revenues. The report sets forth the public health, economic, and anti-poverty case for higher tobacco taxes; shows how some countries have already delivered ambitious reforms; and documents measurable results.
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More Publications
Knowledge Brief: Increasing Taxes on Tobacco in Low and Middle-Income Countries: Hurting or Saving the Poor?
Increasing Taxes on Tobacco in LICs and MICs: Hurting or Saving the Poor?
This note summarizes a set of studies of the effects of raising tobacco taxes in 11 low and middle-income countries using an extended cost-benefit analysis and harmonized national household budget survey data. It also introduces the TOBACTAX Tool (see Tool Highlight below). The studies find that demand price elasticities for tobacco products are larger among lower-income households and that the poor receive the largest long-term gains from tobacco taxation.
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Sin Tax Reform in the Philippines: Transforming Public Finance, Health, and Governance for More Inclusive Development
Sin Tax Reform in the Philippines : Transforming Public Finance, Health, and Governance for More Inclusive Development
In 2012, the Philippines successfully passed a landmark tobacco and alcohol tax reform—dubbed the “Sin Tax Law.” This book describes the design of the Philippines sin tax reform, documents the technical and political processes by which it came about, and assesses the impact that the reform had after three years of implementation.
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Global Tobacco Control Program: Selected Country Work : Tobacco Tax Policy Reforms, Analytical Reports, Videos and Blogs
This booklet summarizes work done, outputs, and policy impact in different countries across different regions supported under the World Bank Group Global Tobacco Control Program, over the 2015-2018 period.
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Tobacco and Alcohol Excise Taxes for Improving Public Health and Revenue Outcomes: Marrying Sin and Virtue?
Tobacco and Alcohol Excise Taxes for Improving Public Health and Revenue Outcomes: Marrying Sin and Virtue?
Designing and implementing good “sin” taxes is a surprisingly complex task. Earmarking revenues from such taxes for health expenditures may also sound good and be a useful selling point for new taxes. However, such earmarking raises difficult issues with respect to budgetary rigidity and political accountability. This note explores these and other issues that lurk beneath the surface of the attractive concept of using increased sin excises on alcohol and tobacco to finance “virtuous” social spending on public health.
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The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
This document describes the course of events that led to the phased adjustment of the tobacco tax approved by Congress in December 2016, with a view to aligning the price of cigarettes in Colombia with the Latin American average.
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Country Case Studies on the Distributional Effects of Tobacco Taxation
Distributional Effects of Tobacco Taxation: A Comparative Analysis
This study compares the simulated distributional effects of tobacco tax increases in eight low- and middle-income countries. It applies a standardized extended cost-benefit analysis methodology and relies on comparable data sources across countries. The net effect of raising taxes on cigarettes encompasses the direct negative price shock to household budgets and the long-term benefits of improved health outcomes.
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The Distributional Impacts of Cigarette Taxation in Bangladesh
The Distributional Impacts of Cigarette Taxation in Bangladesh
Despite the obvious positive health impacts of tobacco taxation, an argument raised against it is that poor households bear the burden of the increased prices because of their higher share of spending on tobacco. This note includes estimates of the distributional impacts of price rises on cigarettes under various scenarios using the Household Income and Expenditure Survey 2016/17.
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Time to Quit: The Tobacco Tax Increase and Household Welfare in Bosnia and Herzegovina
Time to Quit : The Tobacco Tax Increase and Household Welfare in Bosnia and Herzegovina
This paper uses an extended cost-benefit analysis to estimate the distributional effect of tobacco tax increases in Bosnia and Herzegovina. The analysis considers the effect on household income of an increase in tobacco prices, changes in medical expenses, and the prolongation of working years under various scenarios, based on data in three waves of the national Household Budget Survey.
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Are Tobacco Taxes Really Regressive?: Evidence from Chile
This paper describes and simulates the effects of the tobacco tax on incomes in Chile assuming three different price-elasticity scenarios for different income deciles of the population. The results show that although increasing the price of tobacco through higher taxes generates negative income variations across all groups in a population, under a more comprehensive scenario that includes benefits through lower medical expenses and an increase in working years, the results invert, and the overall monetary effect of the taxation policy becomes positive.
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Taxing Tobacco in Georgia: Welfare and Distributional Gains of Smoking Cessation
This paper addresses the policy concern of the welfare and distributional impact of increasing taxes on cigarettes. It seeks to determine whether the claims of the regressive effects of tobacco tax policies have empirical validity in the case of Georgia.
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The Distributional Effects of Tobacco Taxation: The Evidence of White and Clove Cigarettes in Indonesia
Distributional Effects of Tobacco Taxation : A Comparative Analysis
Tobacco taxes are often considered regressive because the share of household budgets allocated to tobacco products is larger among low-income households than among high-income households. This paper shows that, if behavioral and indirect effects, especially health-related effects, are taken into account, this is no longer valid.
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Tobacco Price Elasticity and Tax Progressivity in Moldova
Tobacco Price Elasticity and Tax Progressivity in Moldova
Tobacco tax increases are one of the most effective measures to reduce tobacco consumption, but are usually believed to be regressive, taxing the poor proportionally more than the rich. This paper estimates the tobacco price elasticity of demand for Moldova by income decile and undertakes an extended cost-benefit analysis to estimate the distributional effect of a rise in tobacco taxes on income distribution.
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Distributional Impacts of Taxes and Benefits in Post-Soviet Countries
This study compares the distributional impacts of the main tax and social spending programs in eight countries of the former Soviet Union (Armenia, Belarus, Georgia, Kyrgyzstan, Moldova, the Russian Federation, Tajikistan, and Ukraine) by applying a state-of-the-art fiscal incidence analysis based on the Commitment to Equity methodology.
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Tobacco Taxation Incidence: Evidence from the Russian Federation
Tobacco Taxation Incidence : Evidence from the Russian Federation
Tobacco taxes are often considered regressive because the share of household budgets allocated to tobacco products is larger among low-income households than among high-income households. This paper shows that, if behavioral and indirect effects, especially health-related effects, are taken into account, this is no longer valid. The long-run benefits of not smoking offset the costs associated with tobacco taxes among low-income groups and the overall population.
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Long-Run Impacts of Increasing Tobacco Taxes: Evidence from South Africa
Tobacco taxes are often considered regressive because the share of household budgets allocated to tobacco products is larger among low-income households than among high-income households. This paper argues that if indirect effects, especially on health, are taken into account, this is no longer valid. The long-run benefits of not smoking offset the costs associated with tobacco taxes among low-income groups and the overall population.
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Regressive or Progressive?: The Effect of Tobacco Taxes in Ukraine
Regressive or Progressive? : The Effect of Tobacco Taxes in Ukraine
This paper projects the effects of an increase in the tobacco tax on household welfare in Ukraine. It considers three price-elasticity scenarios among income deciles of the population. The results show that although tobacco taxes are often criticized for being regressive in the short run, in a more comprehensive scenario that includes medical expenses and working years, the benefits of tobacco taxes far exceed the increase in tax liability, benefitting in large measure lower income households.
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The Welfare and Distributional Effects of Increasing Taxes on Tobacco in Vietnam
The Welfare and Distributional Effects of Increasing Taxes on Tobacco in Vietnam
This paper aims to test empirically the claims on the distributional effects of increasing taxes on tobacco in Vietnam. It analyses microdata from the Household Living Standards Survey (VHLSS) and the Global Adult Tobacco Survey (GATS) and other available sources to carry out an Extended Cost Benefit Analysis (ECBA) on the potential effects of raising taxes on tobacco products under different simulated scenarios.
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Journal Published Papers:
Tobacco taxes for improving welfare and distributional outcomes: the case of Georgia
Tobacco taxes for improving welfare and distributional outcomes: the case of Georgia
Alan Fuchs Tarlovsky (World Bank, Poverty and Equity Global Practice)
María Fernanda González Icaza (World Bank, Poverty and Equity Global Practice)
European Journal of Public Health, Volume 31, Issue 5, October 2021, Pages 936–942, doi:10.1093/eurpub/ckab029.
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The health, poverty, and financial consequences of a cigarette price increase among 500 million male smokers in 13 middle income countries: compartmental model study
Global Tobacco Economics Consortium
British Medical Journal 2018; 361, doi: 10.1136/bmj.k1162.
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Analytical and Project Highlights:
| Project ID | Project Name | Development Objective | Start Fiscal Year | Delivery Fiscal Year |
| P154568 | OGE-Tobacco Control Program | Assist selected countries in fostering and implementing tobacco tax reforms in order to reduce tobacco affordability and consumption, as well as to design measures to control illicit trade. In addition, support under the grant will be provided for the establishment of knowledge exchange mechanisms among countries on the economics of tobacco control | 2015 | 2023 |
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P157860 (subtask of P154568) |
Study On Tobacco Tax in Senegal | Support the Government of Senegal to evaluate the impact of the 2013 excise tax increase on cigarettes and on government revenue and the health of population and determine the most optimum tax rate as well as the best tax system. | 2015 | 2018 |
| P153313 | Global Tobacco Control Program | Provide technical assistance to selected countries globally for increasing excise taxes on tobacco products and adopt related policies. | 2014 | 2017 |
| P170052 | Promoting Competitiveness and Enhancing Resilience to Natural Disasters Sub-program 1 Development Policy Loan | Support the Government of the Philippines in i) promoting competitiveness; ii) enhancing fiscal sustainability, including a component to support excise taxes on alcohol and tobacco (revenue primarily used as part of Universal Health Care program); and iii) strengthening financial resilience to natural disasters and climate change. | 2018 | 2021 |
Alcohol Taxes
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Alcohol Taxes
Alcohol taxes
Why Tax Alcohol?
Five percent of deaths worldwide are due to alcohol consumption. Alcohol-related harm derives from the volume of alcohol consumed and patterns of drinking. Excess consumption of alcohol imposes both immediate (e.g., injury) and longer-term harms (e.g., liver cirrhosis, mental health problems). Alcohol-related deaths and disability impact younger populations: 25 percent of total deaths among 20- to 39-year-olds are alcohol-attributable.
Extensive evidence shows that increasing alcohol prices reduces demand. On average, in low- and middle-income countries, a 10 percent increase in price results in a 6 percent decline in alcohol consumption. Notably, higher alcohol prices and taxes contribute to reductions in motor vehicle crashes and fatalities; deaths from liver cirrhosis and alcohol dependence; cases of sexually transmitted diseases; homicides, rape, robbery, child abuse, and spousal abuse; and workplace accidents.
Publication Highlight
Alcohol: Why is reducing alcohol-related problems a priority?
Why is reducing alcohol-related problems a priority
The most effective approach to reduce alcohol-related problems is to implement a comprehensive set of measures to reduce alcohol consumption and related problems. Policy options include price increases (including higher taxes, restrictions on availability (i.e. limits on the times and conditions of alcoholic beverage sales or service, minimum-age limits), strong drink-driving legislation and ready access to treatment.
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More Publications
Sin Tax Reform in the Philippines: Transforming Public Finance, Health, and Governance for More Inclusive Development
Sin Tax Reform in the Philippines : Transforming Public Finance, Health, and Governance for More Inclusive Development
In 2012, the Philippines successfully passed a landmark tobacco and alcohol tax reform—dubbed the “Sin Tax Law.” This book describes the design of the Philippines sin tax reform, documents the technical and political processes by which it came about, and assesses the impact that the reform has had after three years of implementation.
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Tobacco and Alcohol Excise Taxes for Improving Public Health and Revenue Outcomes: Marrying Sin and Virtue?
Tobacco and Alcohol Excise Taxes for Improving Public Health and Revenue Outcomes: Marrying Sin and Virtue?
Designing and implementing good “sin” taxes is a surprisingly complex task. Earmarking revenues from such taxes for health expenditures raises difficult issues with respect to budgetary rigidity and political accountability. This note explores these and other issues that lurk beneath the surface of the attractive concept of using increased sin excises on alcohol and tobacco to finance “virtuous” social spending on public health.
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Analytical and Project Highlights
| Project ID | Project Name | Development Objective | Start Fiscal Year | Delivery Fiscal Year |
| P157198 | Assam State Public Finance Institutional Reforms (ASPIRe) Project | Contribute to improvement in predictability and transparency in budget execution and efficiency in tax administration in the Indian state of Assam, including a tax on alcohol to increase general revenue. | 2015 | 2022 |
| P170052 | Promoting Competitiveness and Enhancing Resilience to Natural Disasters Sub-program 1 Development Policy Loan | Support the Government of the Philippines in i) promoting competitiveness; ii) enhancing fiscal sustainability, including a component to support excise taxes on alcohol and tobacco (revenue primarily used as part of Universal Health Care program); and iii) strengthening financial resilience to natural disasters and climate change. | 2018 | 2021 |
| P168668 and Supplemental Financing P174008 | Benin First Fiscal Management and Structural Transformation Development Policy Operation | Support the Government of Benin to 1) strengthen fiscal and debt management, including a component supporting the increase of excise tax rates on tobacco, alcoholic beverages, energy drinks and fruit juices; 2) improve the financial sustainability of the energy sector ; and 3) foster the development of the digital economy. | 2018 | 2021 |
| P160512 | Reducing Health Risk Factors | Assist the Republika Srpska and the Federation of Bosnia and Herzegovina in reducing selected non-communicable disease risk factors by promoting tobacco and alcohol control, and diet and physical activity in selected beneficiaries in four selected local communities. | 2016 | 2019 |
| P159262 and Supplemental Financing P167330 | Tonga Second Inclusive Growth Development Policy Operation | Support an improved framework for inclusive growth by strengthening fiscal and public sector management, creating a more stable and conducive regulatory framework for business and ensuring a minimum level of protections, particularly for vulnerable groups. This includes a study of impact of health taxes to help raise excises on alcohol, cigarettes and unhealthy foods. | 2016 | 2018 |
Sugar-Sweetened Beverage (SSB) Taxes
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Sugar-Sweetened Beverage (SSB) Taxes
SSB taxes
Why Tax Sugar-Sweetened Beverages?
Sugar-sweetened beverages (SSB) are non-alcoholic beverages containing ‘free sugars’, including caloric sweeteners added to foods and beverages by the manufacturer, cook or consumer (such as sucrose and high-fructose corn syrup), as well as sugars naturally present in honey, syrups, fruit juices, and fruit juice concentrates. SSBs include carbonated soft drinks (carbonates), energy drinks, sports drinks, sweetened juices, sweetened ready-to-drink teas and coffees, sweetened milk-based drinks, and sweetened waters.
SSBs are a key contributor to excess sugar and dietary energy intakes in countries around the world, yet provide little-to-no nutritional value. Their consumption is strongly linked to a range of adverse health effects including tooth decay, excess weight gain, and increased risk of cardiovascular disease, cancer, and type 2 diabetes.
Taxation is a cost-effective tool to reduce SSB consumption, with potential for considerable health, economic, and equity benefits. There is conclusive evidence that SSB taxes raise prices and reduce sales of taxed beverages, with modelling and emerging epidemiological evidence of health benefits, particularly in adolescent girls.
Data Highlight
World Bank data shows that as of August 2023, national SSB taxes were in effect across 117 countries and territories, covering 57% of the world’s population. Moreover, more people in lower-income economies are covered by a SSB tax than higher-income economies.
Map of SSB Taxes as of August 2023
Map of SSB Taxes
| The new Global SSB Tax Database is a comprehensive source of information on verified SSB taxes around the world. Developed as a tool to support research, inform policy decisions, and guide the development of best practice in SSB tax design globally, the online database is open source, accessible, and user-friendly. It contains detailed information on current SSB taxes, including tax type, structure, rates, and products covered, as well as links to official legislation. |
Blogs & News
Diet drinks may be harmful to health: what does it mean for soda taxes?
https://blogs.worldbank.org/en/health/diet-drinks-may-be-harmful-health-what-does-it-mean-soda-taxes
Diet drinks
by Kate Mandeville and Libby Hattersley
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Are you paying taxes on sugary drinks? Half of the world population does and here is why it makes sense
Food and Beverage shop
by Kate Mandeville, Libby Hattersley, Meera Shekar
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No Sugarcoating: Concerns Over Sugary Drink Taxes Are Overblown
by Jean-François Marteau, Kate Mandeville, Lynn Silver
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Factsheet: Taxing Sugary Drinks in Kazakhstan: Key Questions and Answers
Colorful sugary drinks
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The High Cost Of Free Sugars
High cost of free sugars
by Diego Arias, Aira Htenas, Kyoko Shibata Okamura, Meera Shekar, Felipe F. Dizon
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Publications
Taxes on Sugar-Sweetened Beverages: Summary of International Evidence and Experiences
Support for Sugary Drinks Taxes Taxes on Sugar Sweetened Beverages Summary of International Evidence and Experience
This evidence review is designed to support policy makers seeking to implement a tax on sugar-sweetened beverages (SSB). It synthesizes the latest global evidence of effectiveness of SSB taxes and summarizes international experiences with SSB taxation to-date. A summary is also available as a short knowledge brief.
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Knowledge Brief: Countering Common Arguments Against Taxes on Sugary Drinks
Countering Common Arguments Against Taxes on Sugary Drinks
Arguments against SSB taxes tend to closely mirror those used against other health taxes, including that these taxes are not effective, are regressive (hit the poorest hardest), lead to job losses and hurt business, and violate international, regional, or national law. This brief outlines common arguments against SSB taxes, along with the evidence that can be used to counter each proposition.
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Knowledge Brief: Business, Employment, and Productivity Impacts of Sugar-Sweetened Beverage Taxes
Knowledge Brief: Business, Employment, and Productivity Impacts of Sugar-Sweetened Beverage Taxes
Industry-sponsored studies reporting negative effects of SSB taxes on businesses, employment, and economic growth have been used very effectively to support arguments against SSB taxes and influence health-related policy. This brief summarizes the impact of SSB taxes on business, employment, productivity, and government revenue generation.
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Health and Distributional Impacts of a Tax on Sugar-Sweetened Beverages in Kazakhstan
Health and Distributional Impacts of a Tax on Sugar-Sweetened Beverages in Kazakhstan
This report represents the first use of the extended cost-benefit analysis to examine the income distribution effects of taxes on SSBs. The main outcome of interest is the net effect of the taxes on household income via three channels: (1) larger amount of household budget expenditure on SSBs, (2) savings in out-of-pocket spending on health care because of lower disease incidence associated with reduced SSB consumption, and (3) higher labor income resulting from an increase in life-expectancy. A summary is also available as a Poverty and Equity Note.
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The welfare and distributional effects of taxing SSB to reduce the risks of obesity in Ukraine
The welfare and distributional effects of taxing SSB to reduce the risks of obesity in Ukraine
This paper applies an extended cost-benefit analysis to assess the welfare and distributional effects of a simulated increase in excise taxes on SSBs in Ukraine. It accounts for the long-term benefits of reducing out-of-pocket (OOP) medical expenses and human capital losses due to mortality and morbidity related to the excessive consumption of SSBs in Ukraine.
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Learning from the Mexican Experience with Taxes on Sugar-Sweetened Beverages and Energy-Dense Foods of Low Nutritional Value: Poverty and Social Impact Analysis
Learning-from-the-Mexican-Experience-with-Taxes-on-Sugar-Sweetened-Beverages-and-Energy-Dense-Foods
The purpose of this study is to learn from Mexico’s experience in implementing this novel fiscal policy in the fight against obesity. The objectives of this work were to: (i) understand the context in which the fiscal policy was enacted; (ii) describe in detail main features of these taxes; (iii) evaluate the design and implementation process of the policy; (iv) take stock of what is known about the impact of these taxes on fiscal revenue, prices, and consumption among different population groups; and (v) provide options to monitor this reform on a regular basis using publicly available data.
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Journal Published Papers
Impact of a sugar-sweetened beverage tax on sugar producers in Ukraine Kate Mandeville, Bethany Warren, Olena Doroshenko (World Bank, Health, Nutrition, and Population Global Practice), Oleg Nivievskyi, Roman Neyter, Pavlo Martyshev, Volodymyr Vakhitov (Kyiv School of Economics)
European Journal of public health
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Global Coverage and Design of Sugar-Sweetened Beverage Taxes Libby Hattersley and Kate Mandeville (World Bank, Health, Nutrition, and Population Global Practice)
European Journal
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Analytical and Project Highlights:
| Project ID | Project Name | Development Objective | Start Fiscal Year | Delivery Fiscal Year |
| P174149 | Scaling Up “Health Taxes” on Sugar-Sweetened Beverages: An Evidence-Based Approach to NCD Prevention | Support the design and implementation of policies to increase excise taxes on SSB products in prioritized countries, with the goal of decreasing risk of SSB-attributable diseases and reducing the risk of impoverishment due to SSB-related ill health, premature mortality, and disability. | 2020 | 2022 |
| P168553 | Supporting The Design and Implementation of Sugary Drinks Taxes | Build institutional capacity to support the design and implementation of taxes on sugar-sweetened beverages. | 2018 | 2020 |
| P164382 | Samoa Health System Strengthening Program | Improve the quality and efficiency of noncommunicable disease prevention and control in Samoa. | 2017 | 2025 |
| P159262 and Supplemental Financing P167330 | Tonga Second Inclusive Growth Development Policy Operation | Support an improved framework for inclusive growth by strengthening fiscal and public sector management, creating a more stable and conducive regulatory framework for business and ensuring a minimum level of protections, particularly for vulnerable groups. This includes a study of the impact of health taxes to help raise excises on alcohol, cigarettes and unhealthy foods. | 2016 | 2018 |
| P168668 and Supplemental Financing P174008 | Benin First Fiscal Management and Structural Transformation Development Policy Operation | Support the Government of Benin to 1) strengthen fiscal and debt management, including a component supporting the increase of excise tax rates on tobacco, alcoholic beverages, energy drinks and fruit juices; 2) improve the financial sustainability of the energy sector; and 3) foster the development of the digital economy. | 2018 | 2021 |
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