Brief Context
In News The World Health Organization (WHO) has launched the “3 by 35” Initiative, calling on countries globally to increase taxes on tobacco, alcohol, and sugary drinks. About The world faces an urgent challenge of non-communicable diseases (NCDs) such as heart disease, cancer, and diabetes now account for over 75% of global deaths. Simultaneously, shrinking development aid and rising public debt have strained health systems, especially in low- and middle-income countries.
Source Content
Syllabus: GS2/Health
In News
- The World Health Organization (WHO) has launched the “3 by 35” Initiative, calling on countries globally to increase taxes on tobacco, alcohol, and sugary drinks.
- The initiative urges a minimum 50% real price increase on the three targeted products by 2035, achieved through higher excise or health taxes.
About
- The world faces an urgent challenge of non-communicable diseases (NCDs) such as heart disease, cancer, and diabetes now account for over 75% of global deaths.
- Simultaneously, shrinking development aid and rising public debt have strained health systems, especially in low- and middle-income countries.
- Studies suggest a one-time 50% price hike could prevent up to 50 million premature deaths over the next 50 years and raise USD 1 trillion in public revenue over the next decade.
- From 2012 to 2022, nearly 140 countries raised tobacco taxes, with real prices rising over 50% on average, demonstrating that large-scale change is possible.
What is a Health Tax?
- A health tax is a levy imposed on products that have a negative impact on public health—primarily tobacco, alcohol, and sugary drinks. The dual purpose is to:
- Reduce consumption of these harmful products.
- Generate revenue for public health, education, and social protection programs.
Objectives and Expected Impacts
- Reduce NCD Burden: Lower consumption of unhealthy products to prevent millions of premature deaths.
- In Columbia, cigarette tax hike led to a 34% drop in consumption.
- Mobilize Revenue: Generate an additional US$ 1 trillion globally over the next decade.
- Strengthen Health Systems: Fund universal health coverage, prevention, and health infrastructure.
- SDG 3: Ensure healthy lives and promote well-being for all ages, with targets to reduce NCD mortality by one-third by 2030.
Challenges and Considerations
- Industry Opposition: Strong lobbying by tobacco and beverage industries; policy delays and dilution.
- Regressive Tax Concerns: Risk of disproportionate impact on low-income groups unless paired with subsidies.
- Revenue Volatility: Declining consumption may affect long-term revenue stability.
- Tax Exemptions: Long-term industry agreements can restrict tax increases and weaken public health.
Way Forward
- The “3 by 35” Initiative signals a paradigm shift—placing health taxes at the center of both public health and sustainable development strategies. For countries, the path forward involves:
- Designing robust, broad-based health taxes.
- Avoiding industry-driven tax exemptions.
- Using revenues to fund health, education, and social protection, especially for vulnerable groups.
- Building cross-sectoral alliances and engaging civil society for sustained impact.
Source: BS