Syllabus: GS2/Health
In News
- The World Health Organization (WHO) has launched the “3 by 35” Initiative, calling on countries globally to increase taxes on tobacco, alcohol, and sugary drinks.
- The initiative urges a minimum 50% real price increase on the three targeted products by 2035, achieved through higher excise or health taxes.
About
- The world faces an urgent challenge of non-communicable diseases (NCDs) such as heart disease, cancer, and diabetes now account for over 75% of global deaths.
- Simultaneously, shrinking development aid and rising public debt have strained health systems, especially in low- and middle-income countries.
- Studies suggest a one-time 50% price hike could prevent up to 50 million premature deaths over the next 50 years and raise USD 1 trillion in public revenue over the next decade.
- From 2012 to 2022, nearly 140 countries raised tobacco taxes, with real prices rising over 50% on average, demonstrating that large-scale change is possible.
What is a Health Tax?
- A health tax is a levy imposed on products that have a negative impact on public health—primarily tobacco, alcohol, and sugary drinks. The dual purpose is to:
- Reduce consumption of these harmful products.
- Generate revenue for public health, education, and social protection programs.
Objectives and Expected Impacts
- Reduce NCD Burden: Lower consumption of unhealthy products to prevent millions of premature deaths.
- In Columbia, cigarette tax hike led to a 34% drop in consumption.
- Mobilize Revenue: Generate an additional US$ 1 trillion globally over the next decade.
- Strengthen Health Systems: Fund universal health coverage, prevention, and health infrastructure.
- SDG 3: Ensure healthy lives and promote well-being for all ages, with targets to reduce NCD mortality by one-third by 2030.
Challenges and Considerations
- Industry Opposition: Strong lobbying by tobacco and beverage industries; policy delays and dilution.
- Regressive Tax Concerns: Risk of disproportionate impact on low-income groups unless paired with subsidies.
- Revenue Volatility: Declining consumption may affect long-term revenue stability.
- Tax Exemptions: Long-term industry agreements can restrict tax increases and weaken public health.
Way Forward
- The “3 by 35” Initiative signals a paradigm shift—placing health taxes at the center of both public health and sustainable development strategies. For countries, the path forward involves:
- Designing robust, broad-based health taxes.
- Avoiding industry-driven tax exemptions.
- Using revenues to fund health, education, and social protection, especially for vulnerable groups.
- Building cross-sectoral alliances and engaging civil society for sustained impact.
Source: BS
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