WHO Unveils Global Health Tax Initiative to Tackle Chronic Disease. Earlier this week, the World Health Organization (WHO) introduced a bold new campaign urging governments across the globe to adopt stronger health tax measures to curb chronic diseases and increase domestic revenue.
The new initiative, titled “3 by 35,” calls for countries to raise the real prices of tobacco, alcohol, and sugary drinks by at least 50% by the year 2035. These increases would primarily come from higher excise taxes.
Health Taxes: A Strategic Fiscal and Public Health Tool
In a statement announcing the launch, WHO emphasized that the consumption of harmful products—such as tobacco, alcohol, and sugary beverages—is fueling a surge in noncommunicable diseases (NCDs) worldwide.
These NCDs, including cancer, heart disease, and diabetes, are responsible for over 75% of all global deaths.
Dr. Jeremy Farrar, WHO’s Assistant Director-General for Health Promotion and Disease Prevention and Control, described health taxes as one of the most effective fiscal strategies for both saving lives and improving national budgets.
“Health taxes are one of the most efficient tools we have,” said Dr. Farrar. “They cut the consumption of harmful products and create revenue governments can reinvest in healthcare, education, and social protection. It’s time to act.”
Target: $1 Trillion in New Revenue Over 10 Years
The “3 by 35” campaign sets an ambitious target: raising $1 trillion in public revenue over the next decade by increasing excise taxes on harmful products.
Data from the last decade suggests the goal is feasible. Between 2012 and 2022, nearly 140 countries increased tobacco taxes, which raised the real prices of tobacco products by over 50% on average. The result was a measurable decline in usage and a rise in fiscal revenue.
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Global Examples Show Policy Success
Countries such as Colombia and South Africa have demonstrated the dual benefit of these measures: lowered consumption and higher government revenue.
Despite this, WHO noted that many nations still offer tax incentives or sign investment agreements that restrict the ability to raise health-related taxes—particularly on tobacco. These policies, WHO warned, risk undermining national health goals and creating long-term revenue gaps.
A Blueprint for Smarter Taxation
To help governments align health and tax priorities, the “3 by 35” Initiative introduces three central objectives:
- Reduce Consumption Through Higher Prices:
Introduce or increase excise taxes on tobacco, alcohol, and sugary drinks to reduce affordability and cut future healthcare costs. - Generate Sustainable Revenue for Development:
Mobilize domestic resources for critical public services like universal health coverage, education, and social protection. - Build Broad-Based Political and Civil Support:
Encourage collaboration between ministries of finance, health, academia, civil society, and legislators to craft tax policies that are fair, impactful, and publicly supported.
Towards Fiscal Health and Policy Integration
The WHO initiative is not just about taxing harmful products—it’s about integrating fiscal policy into national health and development strategies.
By reducing reliance on external aid and strengthening domestically funded health systems, countries can ensure long-term sustainability, economic stability, and public trust.
WHO is now calling on all stakeholders—governments, development partners, and civil society groups—to rally behind the “3 by 35” Initiative.
The organization encourages countries to adopt smarter, evidence-based taxation models that not only discourage harmful consumption but also unlock vital public revenue streams.
As nations navigate competing fiscal priorities and rising healthcare costs, health taxes present a compelling opportunity to reshape both economic and health policy for a more resilient future.
