Context:

The World Health Organization (WHO) has launched the “3 by 35” Initiative, urging countries to significantly increase taxes on tobacco, alcohol, and sugary drinks. The goal is to achieve at least a 50% real price increase on these products by the year 2035 through higher excise or health taxes.

Background

Non-communicable diseases (NCDs)—including heart disease, cancer, diabetes, and chronic respiratory conditions—now account for over 75% of global deaths.
At the same time, shrinking international aid and rising public debt have put immense strain on health systems, especially in low- and middle-income countries.

According to WHO:

• A one-time 50% price increase on harmful products could prevent up to 50 million premature deaths over the next 50 years.
• It could also generate around USD 1 trillion in public revenue over the next decade.

From 2012 to 2022, 140 countries raised tobacco taxes, leading to an average real price increase of over 50%, proving large-scale impact is achievable.

What is a Health Tax?

A health tax is a levy imposed on products that negatively affect public health, primarily:

• Tobacco
• Alcohol
• Sugary drinks

Purpose:

1. Discourage consumption of harmful products
2. Generate revenue to fund health care, education, and social welfare programs

Objectives and Expected Outcomes

1. Reduce NCD Burden

• Decrease consumption of unhealthy products to lower premature deaths
• Example: A cigarette tax hike in Colombia resulted in a 34% drop in consumption

2. Mobilize Public Revenue

• An estimated USD 1 trillion could be generated globally over the next 10 years

3. Strengthen Health Systems

• Revenue can be used to expand universal health coverage, prevention programs, and health infrastructure

4. Support SDG Goals

• Aligns with Sustainable Development Goal (SDG) 3: Reduce NCD-related mortality by one-third by 2030

Challenges and Considerations

• Industry Lobbying: Strong resistance from tobacco, alcohol, and sugary drink industries can stall or dilute policies
• Equity Concerns: Without targeted subsidies, health taxes may disproportionately impact low-income groups
• Revenue Volatility: Reduced consumption could lead to fluctuating revenue in the long run
• Tax Exemptions: Industry agreements and policy loopholes can limit tax scope and weaken health outcomes

Way Forward

The “3 by 35” initiative reflects a global policy shift, recognizing health taxes as vital tools for public health and sustainable development.

Key Strategies for Countries:

• Design comprehensive and transparent health tax policies
• Resist industry pressure and avoid exemptions that weaken effectiveness
• Use generated revenue to fund health, education, and social safety nets, particularly for vulnerable populations
• Foster cross-sectoral collaboration and engage civil society for wider support and accountability

Conclusion
The WHO’s “3 by 35” initiative presents an evidence-based roadmap to simultaneously address public health, reduce NCDs, and strengthen national health financing. Its success will depend on bold policy action, strong political will, and global cooperation.

Source: Business Standard