Raise prices on sugary drinks, alcohol and tobacco by 50%, WHO suggests

The World Health Organization has made a bold move in advocating for a 50 per cent increase in the prices of sugary drinks, alcohol, and tobacco over the next decade through taxation. This initiative, known as “3 by 35,” aims to reduce consumption of these harmful products that contribute to various chronic health issues such as diabetes and cancer. Additionally, the WHO believes that raising taxes on these products will not only discourage their use but also generate much-needed revenue as development aid decreases and public debt rises.

Jeremy Farrar, WHO’s assistant director-general of health promotion and disease prevention and control, emphasized the effectiveness of health taxes as a tool to address public health challenges. He stated, “Health taxes are one of the most efficient tools we have. It’s time to act.” The WHO officially launched the “3 by 35” initiative at the UN Finance for Development conference in Seville, Spain, highlighting the potential to raise $1 trillion by 2035 based on successful health tax implementations in countries like Colombia and South Africa.

While the WHO has long supported tobacco taxes and price increases, this is the first time it has proposed a target price hike for alcohol and sugary drinks as well. WHO Director-General Dr. Tedros Adhanom Ghebreyesus stressed that these taxes could help governments adapt to the changing landscape and strengthen their healthcare systems with the funds raised. With many low and middle-income countries facing cuts in aid spending, particularly from the United States, initiatives like this are crucial for sustaining public health efforts.

Guillermo Sandoval, a health economist at WHO, provided an example of how this initiative would work in practice. He explained that a middle-income country could raise taxes on these products to increase the price from $4 to $10 by 2035, accounting for inflation. Sandoval also mentioned that the WHO is exploring broader taxation recommendations, including on ultra-processed foods, once a clear definition is established. However, he acknowledged that there may be resistance from the industries involved.

The “3 by 35” initiative has garnered support from various organizations, including Bloomberg Philanthropies, the World Bank, and the Organization for Economic Co-operation and Development (OECD). These entities are committed to assisting countries that are willing to take action to implement these tax measures effectively. As the world continues to grapple with public health challenges, such initiatives are crucial in promoting healthier lifestyles and reducing the burden of preventable diseases.