At the 77th Session of the Regional Committee of the World Health Organization (WHO) for the Americas, held in Washington, D.C., WHO Director-General Dr. Tedros Adhanom Ghebreyesus reiterated the organization’s call for countries to adopt stronger fiscal policies on products harmful to health.
The proposal is part of WHO’s “3 by 35” initiative, which aims to raise the real prices of alcohol, tobacco, and sugary drinks by at least 50% by 2035 through higher taxation.
This announcement followed the UN’s refusal last week to explicitly demonize alcoholic beverages, a move that underscored the political and economic sensitivities surrounding such products. Dr. Tedros emphasized that health taxes are a proven policy tool—not only discouraging unhealthy consumption but also mobilizing significant resources for public health investment.
The Role of Health Taxes in Public Finance
According to WHO, health taxes provide a dual benefit: they reduce demand for harmful products while also generating sustainable domestic revenue for health systems. In his remarks, Dr. Tedros stressed the importance of finding new funding sources as many countries in the Americas struggle with shrinking development aid. By increasing taxes on alcohol, tobacco, and sugary beverages, governments can become more self-reliant and less dependent on foreign support.
Several countries in the region have already implemented such measures, demonstrating feasibility and effectiveness. Evidence shows that even modest increases in taxation can result in measurable declines in consumption and related health problems.
Economic and Industry Implications
The proposal, however, poses challenges for the alcohol and beverage industries, which face potential reductions in sales if higher prices discourage consumption. Producers could also be impacted by rising production costs and a shifting regulatory landscape. Industry representatives are likely to push back against the measures, citing risks to employment, competitiveness, and consumer choice.
Nonetheless, WHO maintains that the public health gains outweigh the economic concerns, highlighting reductions in noncommunicable diseases (NCDs), lower healthcare costs, and improved long-term productivity.
Broader WHO Challenges and Priorities
The push for health taxes comes at a time when WHO itself is grappling with financial strain following the withdrawal of support from major donors such as the United States and Argentina. These shortfalls have forced the organization to adopt cost-cutting measures, including workforce reductions.
Despite this, Dr. Tedros stressed that investment in public health remains vital for resilience and stability. His address also touched on ongoing efforts in disease elimination, maternal health, primary care, and digital health innovation. Countries like Brazil and Suriname were commended for successes in eradicating diseases such as measles and malaria.
Looking ahead, he urged member states to engage actively in global pandemic preparedness negotiations and to back reforms that would strengthen WHO’s operational capacity.
The Road to 2035
The WHO’s tax proposal is expected to spark significant policy debates across the Americas. While some governments already see health taxes as effective tools, others may encounter political resistance from powerful industry lobbies.
Still, WHO’s position is clear: taxation works. By committing to the “3 by 35” strategy, member states could both reduce harmful consumption and secure billions in revenue to strengthen public health systems.
The coming years will reveal whether governments across the Americas embrace the proposal—and whether health taxes become a defining feature of regional public health policy in the lead-up to 2035.
Source: Vinetur