Low Prices of Sugary Drinks and Alcohol Fueling Rise in Non-Communicable Diseases
Dar es Salaam. Health authorities have issued a warning that inexpensive sugary drinks and alcoholic beverages in several countries are driving an alarming increase in non-communicable diseases.
Low taxation on these products has been identified as a primary factor keeping them affordable, contributing to rising cases of diabetes, heart disease, cancer, and related conditions.
The warning came on January 13, 2025, with the release of two global reports indicating that children and young people are disproportionately affected by these health challenges.
The reports recommend increased taxation on sugary and alcoholic beverages as a dual-purpose measure to boost government revenue while reducing consumption. Additional funds generated could strengthen public health services.
While the beverage industries generate substantial profits globally, governments collect minimal revenue, leaving societies to shoulder the long-term health and economic burden.
Currently, at least 116 countries impose taxes on sugary drinks, primarily sodas. However, other sugar-laden products including 100 percent fruit juices, sweetened milk beverages, and ready-to-drink coffee or tea frequently escape taxation.
Data shows that 97 percent of countries tax energy drinks, a figure that has remained static since 2023. Additionally, 167 countries tax alcoholic beverages, while 12 have implemented complete alcohol bans.
Despite these taxation policies, alcohol remains affordable in many regions because tax rates have not kept pace with inflation and income growth since 2022. Wine remains untaxed in approximately 25 countries, predominantly in Europe, despite established health risks.
Alcohol taxes currently represent only about 14 percent of beer retail prices and 22.5 percent for spirits, while sugary drink taxes contribute roughly 2 percent to typical soda prices.
Few countries implement inflation-adjusted tax policies, allowing unhealthy products to remain accessible over time.
Tanzanian nutritionist Sylvia Senkoro emphasized the need for comprehensive research to understand the connection between tax rates, product pricing, and non-communicable disease impacts.
"Not all consumers misuse these products to harmful levels. Research must identify who is most affected, to what extent, and why, to determine the most effective interventions," she stated.
Senkoro highlighted the importance of public education on non-communicable diseases to enable informed consumer choices. "Education should begin with individuals, extend to neighborhoods, and reach entire communities as it is essential for addressing these diseases," she added.
Nutritionist Lucy John echoed this perspective, noting that tax increases alone cannot reduce disease without adequate public awareness. Investment in educational campaigns is critical.
"Alcohol, sugary foods, and drinks continue selling in high volumes despite elevated prices. Education must therefore be prioritized," she explained.
Tanzania has historically maintained low per-litre taxes on soft drinks and alcoholic beverages, whether domestically produced or imported.
The 2025/2026 national budget includes plans to generate revenue from such products to fund the Universal Health Insurance scheme and combat HIV infections.
Proposed amendments to the Excise Duty Act, Chapter 147, would increase taxes on locally produced and imported alcoholic beverages:
- Sh20 per litre for beer under Heading 22.03
- Sh30 per litre for wine under Headings 22.04, 22.05, and 22.06
- Sh50 per litre for spirits and other alcoholic beverages under Heading 22.08
