Raising taxes on alcohol reduces consumption—a net benefit to society and in line with the World Health Organization’s best practices for reducing the harms caused by alcohol.

Critics, many of them aligned with the alcohol industry, say such a tax would portend tragic economic consequences for the country. But the numbers don’t add up.

What does add up is the toll alcohol takes on society: More than 90,000 Brazilians died in 2019 from causes related to alcohol, according to WHO. This by itself should justify all efforts to reduce the easy accessibility to this harmful substance.

Consider that, in addition to these deaths, billions are spent on treating the more than 200 diseases and injuries related to alcohol consumption. Billions more are lost to reduced productivity and increased social security costs. The policy that needs to be enacted is clear: Levying taxes to raise the price of alcohol, including beer, benefits health and extends lives. It is a win-win for Brazilians.

The Tax Reform, especially the Selective Tax, presented by the federal government in April (PLP 68/24), offers Brazil a unique opportunity to significantly improve the lives of its citizens. Contrary to arguments from industry lobbyists, the Selective Tax on alcoholic beverages and other products is not just a way for government to raise funds, but a path to enable Brazilians to live longer, healthier lives.

The National Cancer Institute estimates the total federal government spending on treating cancers associated with alcohol consumption was R$1.7 billion in 2018. If nothing is done, spending by 2030 will be at an estimated R$3 billion and, by 2040, R$4 billion.

According to WHO, Brazil lost 7.3% of its gross domestic product in 2014 because of alcohol use. This was due to a loss in productivity and people missing work. Alarmingly, a 2023 national survey on chronic noncommunicable diseases shows that 1.3 million Brazilians were not able to perform activities at least once a week because of alcohol. There are also considerable public security expenses resulting from violence, injuries, traffic deaths and property damage linked to alcohol. As shown in a 2017 modelling study in the journal Preventive Medicine, focused on state taxes in the U.S., taxing alcohol can actually increase jobs in the economy because the alcohol industry is not labor-intensive and actual effects can only be gauged when taking into account how the extra tax revenue is used.

Simply put, the cost to public health and the economy is significantly more burdensome than the economic loss the alcoholic beverage industry claims it will suffer due to reduced consumption. There are no conflicts in this choice—from any point of view, economic, health or social.

Implementing the Selective Tax would help Brazil make significant strides in fulfilling its commitment with WHO to reduce alcohol consumption by 20% by 2030. To achieve this target, the Ministry of Finance has correctly proposed a mixed structure consisting of a tax on the factory value of a product along with a component based on the product’s alcohol percentage. This structure was maintained by the working group of the Chamber of Deputies, showing they agreed about the importance of the matter.

Without harming the economy or individuals’ freedom, adequate taxation could reduce alcohol consumption in the country by 20% in the coming years. That could mean avoiding 15,000 to 20,000 preventable deaths a year. That would be akin to preventing Brazil from experiencing a catastrophe equivalent to the Chapecoense plane crash every two days. The value of so many lives is incalculable, as is preventing the suffering of tens of thousands of families.

Finally, if we want to develop our country to its fullest potential, we need to invest in our young people. Recent WHO figures show that in 2019, 13% of deaths to people aged between 20 and 39 years were due to alcohol. In the Americas region, over 20% of all deaths among men in this age group are attributable to alcohol. This group is also the most affected by injuries and deaths resulting from violence and traffic crashes, which end life stories much too soon and interrupt a decades-long cycle of contributions to our country’s productivity and growth.

International experiences reinforce the effectiveness of alcohol taxation in reducing consumption and saving lives. Multiple studies and country experiences have demonstrated that alcohol taxation is the most effective public policy for reducing alcohol-related harms. Furthermore, alcohol taxation is an especially cost-effective policy action—one reason the World Health Organization recommends it for all countries as a “best buy” health policy.

Although the industry has campaigned extensively to maintain the current levels of taxation, Brazilian society is not fooled. A Vital Strategies survey of more than 1,000 Brazilians this year shows 93% of the population recognizes alcohol consumption as a concern. Perhaps more importantly, more than 6 in 10 Brazilians endorse price increases and taxes as an effective means of reducing alcohol consumption.

Just as in the late 1990s and early 2000s, when it seemed a distant reality to change the way Brazil dealt with tobacco, there may be doubters. But the country’s bold government action on tobacco saved countless lives. Now Brazil has another opportunity to promote public health and economic development. Governments should make healthy choices as easy and natural as possible. They should also defend the public interest in every way they can. Brazil has an opportunity to improve society in myriad ways by properly taxing alcohol. The choice is simple: Brazil’s economic and social development depends on strong legislation to see this taxation through.

We should let our elected officials know such courageous action deserves all our support.