The World Health Organization (WHO) is urging countries to raise the prices of sugary drinks, alcohol and tobacco by 50 percent over the next decade through taxation — its strongest endorsement yet of so-called ‘sin taxes’ to curb chronic health problems and generate revenue.
The United Nations agency said the proposed tax hikes could significantly reduce consumption of products linked to diseases such as diabetes, cancer and cardiovascular illnesses, while also helping governments cope with shrinking development aid and rising public debt.
“Health taxes are among the most effective tools we have,” said Jeremy Farrar, WHO’s Assistant Director-General for Health Promotion and Disease Prevention. “It’s time to act.”
The initiative, dubbed “3 by 35”, was launched at the UN’s Finance for Development conference in Seville. WHO estimates that the tax measures could raise as much as $1 trillion by 2035, citing evidence from countries like Colombia and South Africa where similar taxes have been implemented.
While the WHO has long championed tobacco taxation and, more recently, taxes on alcohol and sugary beverages, this is the first time it has proposed a specific target increase for all three categories.
WHO Director-General Tedros Adhanom Ghebreyesus told delegates in Seville that the proposed taxes could help governments “adjust to the new reality” and strengthen domestic health systems using the additional revenues.
Many low- and middle-income nations are currently grappling with reduced aid flows, especially due to budget cuts led by the United States — which is not attending the Seville meeting and is in the process of withdrawing from the WHO.
WHO health economist Guillermo Sandoval explained that under the plan, a middle-income country could, for instance, increase taxes to push the price of a product from $4 today to $10 by 2035, factoring in inflation.
Between 2012 and 2022, nearly 140 countries raised tobacco taxes, resulting in an average price increase of over 50 percent, according to WHO data.
Sandoval added that the agency is also exploring broader taxation policies, including on ultra-processed foods. However, it will first finalise a definition for such products in the coming months. He acknowledged that pushback from industry stakeholders is expected.
The “3 by 35” initiative is supported by Bloomberg Philanthropies, the World Bank, and the Organisation for Economic Co-operation and Development (OECD), and includes technical assistance for countries seeking to adopt the measures.