October 14, 2025

General Studies Paper-2

Context: 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.
Print Friendly, PDF & Email

© 2025 Civilstap Himachal Design & Development