July 3, 2025 | Location: Pune, India: In a public health drive, the World Health Organization (WHO) has launched a global call to greatly raise taxes. The taxes are to be on tobacco, alcohol, and sugary drinks by 2035. Titled the “3 by 35” strategy, the proposal includes the imposition of an actual-term price. These products have determined an increase of at least 50%. This will help prevent millions of unnecessary deaths and generate trillions in public revenue.
Launched at the UN’s Fourth International Conference on Financing for Development in Seville. Health Specialists have heralded the program as one of the most ambitious fiscal-policy actions. This causes three-quarters of all deaths globally.
WHO Aims to Prevent through Fiscal Strategies
The WHO initiative follows the shocking trends in lifestyle-related chronic diseases. The diseases include heart disease, diabetes, and cancer—diseases that are largely lifestyle- and substance-induced. WHO projects that this would save up to 50 million premature deaths globally in the next 50 years.
“Health taxes are one of the strongest assets that governments have to save lives and raise revenue,” added WHO Chief Scientist, Dr. Jeremy Farrar. “This is a win-win approach that benefits better health and helps countries to raise domestic funding for critical services.”
“3 by 35” Initiative by WHO
The “3 by 35” initiative has a clear and quantifiable goal: for nations to realize at least a 50% real price rise on each of the three categories of products—tobacco, alcohol, and sugary drinks—by 2035. Policymakers will increase inflation adjustments to maintain their continued effect; they will implement such increases accordingly.
Research by WHO and its partners indicates that more than three-quarters of countries are already in the right direction. Between 2012 and 2022, over 140 nations raised tobacco taxes to increase prices by large margins. Yet just 13% of the world’s population now live in nations that meet WHO’s best-practice benchmark of tobacco taxation, excise taxes representing 75% or more of the price paid by consumers.
On the other hand, alcohol and sugar drink excise taxes are quite low. Excises on sugar drinks average just 6.6% of the price, and alcohol tax regimes vary widely between countries. In order to close these loopholes, far greater action must be taken as delegated by the WHO.
Massive Revenue Potential for Health Systems
Beyond public health benefits, WHO highlights the vast fiscal savings to be realized from increased health taxes. WHO estimates that increasing them globally could bring in more than $1 trillion in additional revenues by 2035. The International Monetary Fund (IMF) agrees, estimating that low- and middle-income countries would be able to raise an additional $2.1 trillion over five years, nearly 40% of what they spend on health now.
Other countries, such as the Philippines and Mexico, are also good examples. In the Philippines, there was a series of tobacco tax increases from 2012 to 2022 that doubled over two times more than double the revenues, most of which were spent on universal health coverage. Mexico’s soft drink tax decreased consumption by a whopping near-10% in only two years since its introduction, with much fiscal benefit.
Contrary to claims that health taxes disproportionately fall on lower-income populations, WHO still maintains that the contrary is the case. Evidence shows that poorer households reduce consumption more deeply in reaction to price increases, achieving greater health gains and incurring lower costs for preventable healthcare in the long term.
“Health taxes are fair and effective,” said Dr. Ruediger Krech, WHO Director for Health Promotion. “The poorest benefit most through reduced risk of illness and lower out-of-pocket expenses.”
Moreover, health taxes tend to prompt manufacturers to reformulate products. The United Kingdom’s soft drink levy, for instance, prompted manufacturers to cut down on sugar levels by over 40% between the years 2015 and 2019.
Political Challenges and Industry Pushback
Despite robust evidence, the path to higher health taxation is not an easy one. WHO has noted that political opposition and lobbying from industry remain the main roadblocks to implementation, especially in terms of alcohol and sweetened drink taxation.
“Tobacco taxation is the most underused public health instrument globally,” the agency said, highlighting that weak taxes on alcohol could prevent an estimated 130,000 deaths annually in Europe alone.
To overcome these barriers, WHO recommends that countries place public health or social program revenues first to gain political and public favor. The agency also calls for better legal frameworks to protect public health policymaking from corporate control.
Global Coordination and Support
Supporters of WHO’s campaign globally include the World Bank, the OECD, Bloomberg Philanthropies, and the IMF. Global agencies will support governments in the design of taxes, allocation of revenue, and policy enforcement.
Technical support will focus on supporting governments to re-peg taxes for inflation, close loopholes in alcohol taxes, and promote transparency and efficiency in spending of revenue produced by health taxes.
“Fiscal policy is a powerful lever for health. Countries that move aggressively will benefit—both in lives gained and in budgets constrained,” Farrar.
Global Health’s Turning Point?
As development assistance declines and government debt rises, health taxes provide a special opportunity to enhance population health. The WHO is optimistic that the “3 by 35” will catalyze globally and usher in a new age of health taxation policy.
This is a moment in history,” stated Dr. Tedros Adhanom Ghebreyesus, WHO Director-General. “With the right leadership, we can save millions of lives, reduce inequality, and improve our health systems. The time for action is now.”
About the Author
