The World Health Organisation has launched a major campaign set to raise public revenue by US$1 trillion globally over the next decade.
The “3 by 35” initiative urges countries to raise prices and add extra taxes on tobacco, alcohol and sugary drinks by at least 50% by 2035 to help curb chronic diseases and generate critical public revenue.
WHO assitant director-general, health promotion and disease prevention, Dr Jeremy Farrar, said health taxes are the most effective tool they have.
“They cut the consumption of harmful products and create revenue governments can reinvest in health care, education, and social protection,” he said.
“It’s time to act.”
According to a recent analysis, a one-time tax increase of 50% could generate US$3.7 trillion in new revenue globally within five years, or on average US$740 billion, which is equivalent to 0.75% of global GDP.
Some governments have already implemented similar health taxes and are seeing financial benefits.
An example is the tobacco excise tax in the Philippines, which led to an increase in revenue from US$1 billion in 20212 to $2.9 billion in 2022.
According to the WHO, many countries have expressed interest in transitioning toward more self-reliant, domestically funded health systems.
The WHO has suggested similar taxes and price rises on alcohol and sugary drinks in recent years but this is the first time the organisation has suggested a target price for all three products.
This comes as the U.S. continues the process of withdrawing from the WHO.
