WHO’s “3 by 35” Health-Tax Initiative: Raising Prices on Unhealthy Goods to Save Lives and Fund Development
SDG 3: Good Health and Well-being
Institutions: Ministry of Health and Family Welfare; Ministry of Finance
The World Health Organization (WHO) has launched the “3 by 35” Initiative, urging countries to raise real prices of tobacco, alcohol, and sugary drinks by at least 50 percent by 2035 through health taxes - a move designed to curb chronic diseases and generate essential public revenue.
Noncommunicable diseases (including heart disease, cancer, and diabetes) account for over 75 percent of global deaths. Evidence indicates that a one-time 50 percent price increase on these products could prevent 50 million premature deaths over the next 50 years.
The initiative aims to raise US $1 trillion over the next ten years. Almost 140 countries had already raised tobacco taxes between 2012 and 2022, achieving average real price increases over 50 percent, demonstrating that large-scale change is possible.
WHO emphasizes that health taxes are among the most efficient tools available: they reduce harmful product consumption and generate revenue that governments can reinvest in healthcare, education, and social protection.
The initiative encourages governments to remove tax exemptions and avoid industry agreements that hinder tax increases, and underscores the need for multisectoral collaboration involving health, finance ministries, civil society, and academia.
Relevant question for policy stakeholders: How can India design and implement health taxes on tobacco, alcohol, and sugary beverages - ensuring a 50 percent real price increase by 2035 - while maintaining political feasibility and maximizing revenue for health and development?
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