ABSTRACT

Effective NCD prevention strategies require changes in the consumption and production of products that shape people’s lives and health, from food to energy or from substances like tobacco and alcohol to leisure activities and transport. In a market economy, prices are key drivers of consumer and producer choices, and in many instances unhealthy products are cheaper than healthy alternatives. Governments have powerful tools at their disposal to influence market prices, including consumption taxes. Tobacco and alcohol taxes are among the WHO best buys, and sugar-sweetened beverages taxes are recommended as an effective means of reducing individuals’ sugar intake, especially among children. This chapter describes important definitions of taxes, how health taxes work and specific issues around taxing tobacco, alcohol, foods and non-alcoholic beverages. The chapter reminds readers that taxes should be combined with synergistic measures such as product labelling, regulation of marketing and issues around access, availability and affordability, to best enable people to adopt a healthy lifestyle and diet.