The World Health Organization is calling on countries to raise taxes on sugary drinks, alcohol, and tobacco to increase prices by 50% over the next 10 years.
The aim is to reduce consumption of these products and generate additional public revenue.
The proposal, launched at the UN Finance for Development conference in Seville, is part of the WHO’s “3 by 35” initiative. The organization estimates the plan could raise $1 trillion by 2035, based on data from countries like Colombia and South Africa.
The WHO said the new effort marks its strongest push yet for health-related taxes. While it has supported tobacco taxes for decades and called for alcohol and sugary drink taxes in recent years, this is the first time it has set a unified price target for all three products.
WHO Director-General Dr. Tedros Adhanom Ghebreyesus said the taxes could help governments adjust to current financial pressures and improve health systems. WHO Assistant-Director General Jeremy Farrar called health taxes one of the most efficient tools available.
As an example, WHO health economist Guillermo Sandoval said a middle-income country could raise the price of a product from $4 to $10 by 2035, including inflation.
Nearly 140 countries increased tobacco taxes by more than 50% between 2012 and 2022, the WHO noted. Sandoval said the agency is also looking at potential taxes on ultra-processed foods once it finalizes a definition for them.
The plan is backed by Bloomberg Philanthropies, the World Bank, and the OECD, which have offered to support countries willing to act.
Industry groups criticized the proposal. The International Council of Beverages Associations said there is no evidence sugar drink taxes reduce obesity. The Distilled Spirits Council said tax increases would not reduce alcohol abuse.
