Sugary Drink Taxes: Growing Momentum, Persistent Resistance
October 15, 2026
Taxes on sugar sweetened beverages are among the most studied tools for preventing type 2 diabetes. This quarter brought new evidence on how far most countries still have to go, alongside decisions that show both progress and pushback.
On 30 September 2026, the World Health Organization reported that at least 116 countries now tax sugar sweetened beverages, but the median tax amounts to only 2.4 per cent of the retail price. Between 2022 and 2024, sugary drinks became more affordable in 62 countries and less affordable in only 34. Around a quarter of these taxes are based on sugar content, and only 14 per cent adjust automatically for inflation. WHO restated its "3 by 35" goal, which calls for a 50 per cent real increase in prices by 2035.
The United Kingdom is moving to strengthen its levy. On 13 July, HM Revenue and Customs published draft legislation that will lower the sugar threshold from 5g to 4.5g per 100ml and remove the exemption for milk-based drinks from 1 January 2028. In the Philippines, the Department of Finance proposed on 17 September to raise the excise on sweetened drinks from P6 to P20 per litre, and on drinks made with high fructose corn syrup from P12 to P40 per litre, with a 5 per cent increase each year after that. Revenue would support Universal Health Care. The proposal cites 2,795 diabetes deaths recorded as of February 2026, ranking diabetes fifth among causes of death.
In Nigeria, the Senate passed amendments on 4 June 2026 that would replace the flat ₦10 per litre excise with a rate linked to retail price, with senators supporting the use of revenue for health promotion and primary care. As of 22 September, the bill awaited concurrence by the House of Representatives. In Colombia, the direction is reversed: Representatives Daniel Briceño and Carol Borda filed a bill to abolish the country's "healthy tax" on ultra processed foods and sugary drinks, in force since November 2023, citing a retailers' survey in which 66.8 per cent of shopkeepers reported lower sales.
Experience also shows that the design of a health tax matters as much as its rate. At the PDGN forum in Melbourne in August, Hon. Craig Cannonier, JP, MP, President of the PDGN Advisory Board, shared Bermuda's experience. Bermuda introduced a 75 per cent import tariff on high sugar products (Williams, Hill and Oyebode, 2022). According to his account, retailers then distributed the extra cost across other products in grocery stores and supermarkets, raising the price of everyday goods. A policy introduced in good faith produced an unintended consequence for household budgets.
Participants discussed two further approaches that parliaments can consider alongside, or instead of, a tax: subsidising or reducing taxes on sugar free and healthier food products, so that the healthy option becomes the affordable one; and setting legal maximum levels of sugar and salt in packaged foods, expressed per millilitre or per gram, to limit unhealthy content at the source. Both shift attention from penalising consumers to reshaping what is on the shelf.
○ ADVOCACY ACTION FOR PARLIAMENTARIANS Parliamentarians should ask their finance ministries how national sugary drink taxes compare with WHO recommendations, and push for taxes that raise prices meaningfully, rise with inflation, are based on sugar content and fund prevention and primary care. Before any new health tax is voted on, members can request an assessment of unintended consequences, including how retailers may pass costs on to other goods, and press governments to consider complementary measures such as subsidies for healthier products and legal limits on sugar and salt in packaged foods. Where repeal is proposed, as in Colombia, legislators can request independent evidence on health impact before any vote. |