The World Bank said on Wednesday, urging governments to consider the measure, AFP reported.

According to a blog post published by the WB, this will “increase productivity and revenue” for governments and improve people’s health by encouraging them to consume alternative beverages such as water.

This type of tax is based on the principle of a price signal, raising the price of targeted products to reduce their consumption.

Currently, more than half of the world’s population lives in countries that have introduced this type of tax, mostly in poor and developing countries. In contrast, most G20 countries have not introduced special taxation of sweetened beverages.

Coverage is also uneven between regions, with 98% of South Asia and 81% of Latin America covered, while only 21% of North Africa and the Middle East and even 10% of East Asia and the Pacific are covered.

What research says about sugary drink overload

To be more effective, such taxation should significantly increase prices and target a wide range of products, including fruit juices.

However, the WB regrets that in most cases this taxation is not sufficiently targeted, including bottled water, thus reducing the potential consequences for public health.

The institution reminds that sugary drinks “are associated with obesity, cardiovascular diseases, diabetes and dental problems.” In 2016, these health problems affected two billion people, 70% of whom live in poor or developing countries.

These diseases also have an economic impact, “reducing life expectancy, productivity and increasing health care costs.”

Studies in Mexico and the UK have shown that taxing these drinks has led to a reduction in obesity, particularly among young girls.