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    WHO “3 BY 35” Initiative

    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.

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    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 Issue

    • 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.

    Need for Health Tax

    • Health Impact: Consumption of tobacco, alcohol, and sugary drinks fuels the NCD epidemic which accounts for over 75% of global deaths.
    • Economic Impact: These products create negative externalities (costs to others) and internalities (hidden costs to consumers).
    • Tobacco use alone costed the global economy US$ 1.4 trillion in    2012     
    • Revenue Generation: 50% tax can generate up to US$ 3.7 trillion in new revenue globally within five years, or an average of US$ 740 billion per year – equivalent to 0.75% of global GDP.
    • Promote Equity: As NCDs impact lower-income populations disproportionately.

    What is a Health Tax

    • Levied on products that have a negative public health impact e.g. Tobacco, Alcohol etc.
    • WHO recommends taxation as one of the most cost-effective tools for addressing population levels of obesity and other related non-communicable diseases (NCDs).

    Objectives and Expected Impacts

    • Reduce NCD Burden: Lower consumption of unhealthy products to prevent millions of premature deaths..
    • 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.

    Steps taken in India for curbing consumption of Unhealthy Products

    • Aerated beverages in India are taxed at 28% GST and an additional 12% Compensation cess. 
    • High-fat sugar Salt (HFSS) foods in India are taxed at a 12% GST rate.
    • FSSAI limits Trans fatty acids (TFA) in food products to 2% by mass of total oils and fats.

    Conclusion

    The “3 by 35” Initiative signals a paradigm shift—placing health taxes at the center of both public health and sustainable development strategies.

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