The World Health Organization (WHO) is urging countries to increase the prices of sugar-based beverages, alcohol, and tobacco by 50% over the next decade through taxation. This marks the strongest push yet for so-called ‘sin taxes,’ aimed at addressing chronic public health issues and supporting government healthcare budgets. The UN health agency noted that this move could help reduce consumption of products contributing to diseases like diabetes and certain cancers, while also boosting spending amid declining development aid and rising public debt.
“Health taxes are one of the most effective tools we have,” said Dr. Jeremy Farrar, WHO Deputy Director-General for Health Promotion and Disease Prevention and Control. “It’s time to act.” The WHO unveiled the initiative, named “3 by 35,” at the United Nations Development Summit in Seville. According to the WHO, this tax initiative could generate up to $1 trillion by 2035 based on data from health taxes in countries such as Colombia and South Africa.
While the WHO has long supported tobacco taxes and price increases, and has recently advocated for taxes on alcohol and sugary drinks, this is the first time it has proposed a targeted price increase across all three product categories. WHO Director-General Tedros Adhanom Ghebreyesus told the Summit that these taxes could help governments “adapt to the new reality” and strengthen their health systems using the generated revenues.
For example, a government in a middle-income country could raise taxes on these products to push the price from $4 today to $10 by 2035, accounting for inflation, said WHO health economist Guillermo Sandoval. Nearly 140 countries have already increased tobacco taxes—and thus prices—by 50% or more on average between 2012 and 2022, the WHO added. Sandoval further stated that the WHO is also considering issuing recommendations for broader taxation, including on ultra-processed foods.