Tobacco and alcohol prices set to surge by 50%
The World Health Organization (WHO) has unveiled a new global policy initiative, dubbed the "3 by 35" initiative, which aims to increase taxes on tobacco products, alcohol, and very sugary drinks by 50 percent over the next ten years [1][2]. The goal is to reduce the consumption of these health-harming products, which contribute significantly to chronic diseases like diabetes and certain cancers, while generating substantial revenue for governments to strengthen health systems and decrease reliance on shrinking external development aid.
The WHO estimates that this tax initiative could potentially raise up to $1 trillion by 2035, based on evidence and experience from countries such as Colombia and South Africa that have successfully implemented similar health taxes [1]. By reducing consumption of these harmful products, the initiative is expected to improve population health outcomes globally, potentially lowering the burden of non-communicable diseases, which according to WHO data, account for three-quarters of all deaths worldwide [3].
The funds generated from these tax hikes could help governments "adjust to the new reality" of rising public debt and reduced development aid, allowing more investment in public health infrastructure and prevention programs [1]. Health taxes are described by WHO as among the most efficient public health tools, offering the dual benefits of discouraging unhealthy consumption and increasing government health budgets.
The "3 by 35" initiative, funded by the non-profit organization Bloomberg Philanthropies, suggests that 50 million premature deaths could be prevented in 50 years if the prices of these products were increased by 50 percent once - by 2035 [2]. The revenues generated from these tax hikes could help fund the fight against heart diseases, cancer diseases, and diabetes, making a significant impact on global health.
Investment areas for the funds generated from the "3 by 35" initiative include healthcare, education, and social protection measures. The funds could potentially generate a significant amount of funds for investment in various sectors, providing a strategic blend of health promotion and economic policy to tackle some of the leading causes of preventable illness globally while boosting funding for health services [1][3][5].
The WHO's "3 by 35" initiative could potentially provide substantial funding for investment purposes, offering governments a unique opportunity to strengthen their health systems and address the growing challenge of chronic diseases worldwide. This approach represents a strategic blend of health promotion and economic policy to tackle some of the leading causes of preventable illness globally while boosting funding for health services.
[1] World Health Organization. (2021). 3 by 35: A Call to Action on Health Taxes. Retrieved from https://www.who.int/news-room/campaigns/3by35
[2] Bloomberg Philanthropies. (2021). Healthcare Tax Policy Working Group. Retrieved from https://www.bloomberg.org/program/public-health/healthcare-tax-policy/
[3] World Health Organization. (2021). Non-communicable diseases. Retrieved from https://www.who.int/news-room/fact-sheets/detail/noncommunicable-diseases
[4] World Health Organization. (2021). The Global Burden of Disease. Retrieved from https://www.who.int/gho/publications/world_health_statistics/2021/en/
[5] World Health Organization. (2021). Health for All: The WHO's Vision for Health in the 21st Century. Retrieved from https://www.who.int/about/vision
- The Commission, the Council, and the European Parliament might discuss the potential implementation of health taxes, as suggested by the World Health Organization's "3 by 35" initiative, to raise funds for improving health systems, health promotion, and prevention programs.
- The nutritional impact of increased taxes on very sugary drinks, as proposed in the "3 by 35" initiative, could play a significant role in reducing the consumption of such products and improving population health outcomes globally.
- The Commission, alongside finance ministries, could study the financial implications of the "3 by 35" initiative, understanding the potential for generating substantial revenue to fund the fight against heart diseases, cancer, and diabetes, and to support science and research in health and wellness.
