Alcohol Taxation: A Public Health Imperative

Abstract

Alcohol consumption remains a leading cause of preventable death and disease worldwide. Despite its significant health and societal harms, alcohol remains relatively inexpensive and easily accessible in many countries. This article reviews evidence from the World Health Organization and other sources demonstrating that raising alcohol taxes is a highly effective public health intervention. Tax increases reduce harmful consumption, generate government revenue, and decrease alcohol-related mortality and morbidity. We advocate for robust, sustained increases in alcohol excise taxes tied to alcohol content and adjusted for inflation as a critical policy tool to reduce alcohol harm globally.

Introduction

Alcohol use contributes substantially to global disease burden, causing approximately 2.6 million deaths annually (WHO 2025). Its affordability has increased over the last two decades, undermining public health objectives. Compared to other recreational drugs, alcohol is taxed much less, making it cheaper and more widely consumed despite its disproportionate harms. This article summarizes current evidence on the effects of alcohol taxation and argues for stronger fiscal policies to reduce alcohol-related harm.

Methods

This review draws primarily from the latest reports and data published by the World Health Organization in 2025, supplemented by case studies and economic analyses from European countries with recent tax reforms. The key parameters assessed include alcohol affordability, health outcomes, government revenues, and the relationship between excise tax increases and consumption patterns.

Results

The WHO European Region reports approximately 800,000 alcohol-attributable deaths annually, with substantial morbidity from cancers, cardiovascular diseases, liver cirrhosis, violence, and injuries (WHO 2025). Despite this, alcohol affordability has increased by up to 76% in some countries. Tax increases have been demonstrated to significantly reduce alcohol consumption and related harms. For example, Lithuania's 2017 excise reforms led to 22% fewer alcohol-attributable deaths and €100 million additional tax revenue within one year (Movendi 2025). WHO modeling indicates a 10% tax increase yields approximately €59 more revenue per capita and meaningful decreases in alcohol-related mortality.

Discussion

Alcohol taxation represents a “best-buy” intervention recommended by WHO for its cost-effectiveness and rapid health impact. Higher taxes reduce consumption, particularly of cheap, high-strength beverages most linked to harm. Concerns around illicit alcohol markets have not been substantiated when governance is adequate. Revenues generated can support health services and social programs, enhancing equity by disproportionately benefiting vulnerable populations. The 2025 WHO 3×35 Initiative calls for a 50% real price increase on alcohol by 2035 to save millions of lives (WHO 2025).

Conclusion

In light of current evidence, maintaining low alcohol taxes constitutes a major public health shortcoming. Increasing excise taxes significantly reduces drinking harms and creates sustainable fiscal space for public health investments. Policymakers should consider alcohol taxation an essential tool to achieve public health goals and advance sustainable development.

References

World Health Organization. Raising Taxes on Alcohol to Save Lives and Protect Public Health. WHO Regional Office for Europe; 2025.

Movendi International. Economic and Health Benefits of Alcohol Excise Tax Increases: Lithuania Case Study. 2025.

World Health Organization. Alcohol Taxes, Prices and Affordability in the WHO European Region. WHO; 2025.

World Health Organization. WHO 3×35 Initiative to Raise Health Taxes by 50% by 2035. 2025.

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