Overview 

The World Health Organisation (WHO) is urging countries to raise taxes on harmful products such as sugary drinks, alcohol, and tobacco by at least 50% over the next decade. Launching its strongest push yet through the new “3 by 35” initiative, the WHO argued that higher prices would cut consumption of these products, which fuel chronic diseases including diabetes and cancer.

Speaking at the UN Finance for Development conference in Seville, WHO assistant director-general Dr Jeremy Farrar said, “Health taxes are one of the most efficient tools we have. They cut the consumption of harmful products and create revenue that governments can reinvest in health care, education, and social protection. It’s time to act.”

Taxes Could Raise $1 Trillion in Public Revenue

The WHO estimates the plan could raise around $1 trillion in public revenue over the next ten years, a crucial source of funds as development aid shrinks and global public debt grows. Nearly 140 countries raised tobacco taxes between 2012 and 2022, pushing prices up by more than 50% on average, according to WHO data.

Industry Rejects, Urges Consumer Education

However, industry representatives argue that taxes alone cannot solve public health problems. A spokesperson for FoodDrinkEurope said a 50% tax on drinks is “not the solution,” claiming diets and lifestyles are too complex to fix with what they call “blunt instruments.” They warned that one-size-fits-all taxes could drive people toward unregulated or riskier alternatives, adding to health and social costs. They instead urged policymakers to empower consumers with better information and broader choices for healthier lifestyles.

Countries Responding to Tax Measures

Several countries are already considering or implementing such taxes. In June, Vietnam approved a plan to raise consumption tax on alcohol and introduce a levy on sugary drinks. The UK also launched a consultation in April to expand its sugar tax to milk-based drinks. Meanwhile, Italy has repeatedly delayed its planned sugar tax on soft drinks, pushing the date to January 2026 after initially approving it in 2020.

Source: The Hindu