The World Health Organization (WHO) called on nations to increase the prices of sugary drinks, alcohol, and tobacco by at least 50 percent over the next decade, at a press conference on July 2; part of wider efforts to curb chronic diseases and generate critical public revenue.
The WHO unveiled the new health taxation initiative, dubbed “3 by 35” at the U.N. Finance for Development conference in Seville.
According to the WHO, NCDs, including heart disease, cancer, and diabetes, account for more than 75 percent of all deaths worldwide. A one-time 50 percent price increase on tobacco, alcohol, and sugary drinks could prevent 50 million premature deaths over the next 50 years, it said.
It could also generate $3.7 trillion in new revenue globally within five years, or an average of $740 billion per year, which is equivalent to 0.75 percent of global GDP, the WHO said.
The agency has set “an ambitious but achievable goal” of raising $1 trillion by 2035 through the new health tax initiative, according to the statement.
Between 2012 and 2022, nearly 140 countries raised tobacco taxes, which resulted in an increase of real prices by more than 50 percent on average, WHO said, adding that this shows “that large-scale change is possible.”
“Health taxes are one of the most efficient tools we have,” said Jeremy Farrar, the WHO’s assistant director general of health promotion and disease prevention and control.
“They cut the consumption of harmful products and create revenue governments can reinvest in health care, education, and social protection. It’s time to act.”
Though the WHO has backed tobacco taxes and price rises for decades, and has called for taxes on alcohol and sugary drinks in recent years, the initiative marks the first time the agency has suggested a specific price hike for all three products.
The health agency said many countries have “expressed interest in transitioning toward more self-reliant, domestically funded health systems” and are “turning to WHO for guidance.”
It also said the initiative will function as a “collaborative alliance,” with WHO coordinating with a coalition of development partners, civil society, academic institutions, and national governments.
“Together, they will support countries in designing, implementing, and sustaining effective health tax policies tailored to local contexts,” the agency said. “This includes technical assistance on legal frameworks, tax administration, policy advocacy, and public engagement.”
Three key actions serve as the basis of the initiative, according to the WHO: mobilizing countries, supporting country-led policies, and building commitment and partnerships.
While the health agency touted the plan, the International Council of Beverages Associations (ICBA), which represents the global non-alcoholic beverage industry, criticized the move.
“In fact, the WHO itself has repeatedly concluded that such taxes are not the best or most effective measure to address these complex issues.”
Loatman said the beverage industry continues to work on “innovative solutions” to support health, such as increasing access to low- and no-sugar beverage options and supporting transparent labeling.
“By working together on these proactive measures, we can deliver real, measurable progress toward global health priorities,” Loatman said.
