Why the G20 Should Strengthen Health Taxes on Sugary Drinks, Processed Foods, Alcohol, and Tobacco

By 2030, non-communicable diseases are projected to cause 75% of all global deaths, with a significant 8% occurring in the developing world. These 'silent killers,' including type 2 diabetes, hypertension, heart disease, and certain cancers, are affecting populations at increasingly younger ages. A major contributing factor to this rising trend is the widespread consumption of sugary drinks, processed foods high in salt, sugar, and saturated fats, and increased exposure to aggressive advertising promoting these unhealthy products.

The marketing of such products is intertwined with the concept of 'commercial determinants of health,' where market forces and industry practices influence social norms and consumption patterns. Products like tobacco, sugary beverages, ultra-processed foods, and alcohol rank at the top of health risks, with industries heavily advertising their products—often during peak times like after school hours—to target children and families.

Efforts to mitigate these health risks include policies such as product taxes and advertising bans, with some countries showing positive outcomes. However, significant gaps remain, particularly due to industry resistance and manipulative tactics. Industry groups tend to deny harm, cast doubt, and promote voluntary commitments instead of binding regulations. When legislation is pursued, corporate influence often weakens the measures, making them less effective.

Research indicates that increasing prices through taxes can effectively reduce demand, especially among youth, and lead to better health outcomes without considerable impact on employment. Yet, progress in raising taxes on alcohol and tobacco remains slow, and taxes on sugary drinks are still too low. The corporate sector frequently counters these efforts by promoting disinformation and lobbying against taxation policies.

A 2024 report estimates that doubling prices of tobacco, alcohol, and sugary drinks could generate an additional USD 3.7 trillion over five years, funds crucial for strengthening healthcare systems and reducing catastrophic health costs for vulnerable populations. Globally, a 50% increase in prices could save an estimated 50 million lives over fifty years.

The G20, representing two-thirds of the world’s population, has a pivotal role in closing these policy gaps. By prioritizing health in its agenda, the G20 can push for higher taxes on harmful products, better regulation of marketing, and enhanced global monitoring of corporate practices. These steps are vital to combat the systemic influence of commercial actors that undermine public health efforts.

Key initiatives include promoting health-focused policies before the health crisis worsens, advocating for increased taxes on tobacco, alcohol, and sugary beverages, and ensuring that trade policies align with health objectives. The G20 countries must also strengthen monitoring frameworks to hold corporations accountable and prevent conflicts of interest, fostering a healthier global environment for future generations.