WHO calls for 50% tax hike on sugary drinks, alcohol, and tobacco

The World Health Organization (WHO) has called for a 50% price increase on sugary drinks, alcohol, and tobacco over the next decade, pushing for taxation as a means to reduce chronic diseases and raise funds for health systems.

The initiative, called '3 by 35,' was unveiled at the United Nations Finance for Development conference in Seville earlier this week.

“Health taxes are one of the most efficient tools we have,” said Dr Jeremy Farrar, Assistant Director-General, Health Promotion and Disease Prevention and Control, WHO.

“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,” Farrar added.

The WHO estimates that the initiative could generate $1 trillion by 2035, based on successful examples in countries such as Colombia and South Africa.

This is the first time the WHO has set a specific target for price increases on all three products, although it has advocated for tobacco taxes and price hikes on sugary drinks and alcohol in recent years.

WHO Director-General Dr. Tedros Adhanom Ghebreyesus said that the funds raised could help strengthen national health systems, particularly in low- and middle-income countries struggling with aid cuts.

However, the tax proposal faces resistance from industry groups, with critics arguing that higher taxes won't effectively reduce health problems such as obesity or alcohol abuse.

Kate Loatman of the International Council of Beverages Associations and Amanda Berger of the Distilled Spirits Council expressed concerns that the proposed taxes would not lead to the intended health outcomes.

The initiative has garnered support from organizations such as Bloomberg Philanthropies, The World Bank, and the Organisation for Economic Co-operation and Development (OECD), and aims to assist countries that wish to implement these measures.

Copied