WHO is advocating for a significant rise in taxes on unhealthy products such as sugary drinks, tobacco, and alcohol. This push comes as health systems worldwide are struggling to cope with the burden of non-communicable diseases (NCDs). The World Health Organization (WHO) is calling for a price hike of up to 50% on these items by 2035 to alleviate the strain on healthcare services caused by NCDs like heart disease, cancer, and diabetes.
“Health taxes are one of the most efficient tools we have,”
emphasized Jeremy Farrar, WHO’s Assistant Director-General for Health Promotion and Disease Prevention. By implementing higher taxes on harmful products, governments can not only discourage their consumption but also generate revenue that can be reinvested in essential sectors like healthcare, education, and social welfare.
The WHO introduced the “3 by 35” initiative in response to the escalating prevalence of NCDs globally and the mounting pressure on health systems. With dwindling development aid and escalating public debt posing challenges, raising taxes on sin goods presents itself as a viable solution. Reports indicate that a substantial increase in prices could prevent millions of premature deaths over the next five decades.
According to WHO data, more than three-quarters of all deaths worldwide are attributed to NCDs. Tobacco use alone claims over seven million lives annually. By imposing higher taxes on these products, countries stand not only to curb consumption but also potentially raise an additional US$1 trillion in public revenue within the next decade.
The impact of increased taxation has already yielded positive outcomes in various nations. Nearly 140 countries raised tobacco taxes between 2012 and 2022, resulting in real price hikes exceeding 50% on average. This success underscores the feasibility and effectiveness of implementing large-scale changes through taxation policies.
As countries grapple with rising healthcare costs and unprecedented health challenges exacerbated by lifestyle-related diseases, prioritizing public health through innovative fiscal measures like sin taxes becomes paramount. The shift towards reevaluating tax structures concerning unhealthy commodities signifies a proactive step towards safeguarding population health while bolstering fiscal sustainability.
