WHO Urges a 50% Tax Hike on Tobacco, Alcohol by 2035

The World Health Organization (WHO) launches the “3 by 35” Initiative, a global call for countries to raise real prices on tobacco, alcohol, and sugary drinks by at least 50% by 2035 through targeted health taxes. The effort aims to reduce the burden of noncommunicable diseases (NCD) while generating domestic revenue to strengthen health systems facing mounting financial pressures.

NCDs, including heart disease, cancer, and diabetes, are responsible for over 75% of all deaths worldwide, reports WHO.  In Mexico, recent data shows alarming trends in the prevalence of NCDs among Mexican adults. From 2018 to 2022, the percentage of adults with hypertension surged from 34.10% to 47.80%. This condition significantly increases the risk of heart disease and stroke, reports Mexico’s Ministry of Health (SSA).

Similarly, the prevalence of diabetes has seen a notable increase. In 2018, 14.40% of Mexican adults were diagnosed with diabetes. By 2022, this figure had risen to 18.30%. “In Mexico, diabetes is considered a health crisis, and its prevalence is increasing especially after COVID-19,” says Karla Alcazar, President and General Manager, Eli Lilly Latin America, to MBN.

WHO warns that the rising prevalence of these conditions, coupled with shrinking development aid and growing public debt, has placed significant strain on health infrastructure across countries. A recent report estimates that a one-time 50% price increase on tobacco, alcohol, and sugary drinks could prevent 50 million premature deaths over the next 50 years.

The report Healthy Taxes: More Resources for Public Health, published by Fundar and El Poder del Consumidor, argues that taxation and public spending can be used to reduce health harms linked to sugary drinks, alcohol, tobacco, and ultra-processed foods.

Jeremy Farrar, Assistant Director-General for Health Promotion and Disease Prevention and Control, WHO, highlights the effectiveness of health taxes in curbing harmful consumption while also enabling governments to reinvest in critical areas such as healthcare, education, and social protection. He calls for immediate action to capitalize on what he described as one of the most efficient tools available to policymakers.

The initiative sets a revenue goal of US$1 trillion over the next decade. Between 2012 and 2022, nearly 140 countries increased tobacco taxes, leading to average price increases above 50%. WHO highlights this trend as evidence that large-scale fiscal reform is achievable. Countries such as Colombia and South Africa have already implemented similar measures, resulting in reduced product consumption and increased public revenue. However, the organization cautions that progress remains uneven. 

The “3 by 35” Initiative is designed to support countries interested in strengthening their domestic health financing strategies. WHO is providing technical assistance, policy guidance, and implementation support in collaboration with a network of global partners. The initiative encourages countries to integrate health taxes into broader fiscal and development strategies while engaging finance ministries, parliaments, civil society, and academic institutions to build multisectoral support for policy change.

WHO frames the initiative as part of a broader push to help countries transition toward more self-sufficient, domestically funded health systems. By reducing the affordability of harmful products, mobilizing public resources, and fostering political will, the organization aims to align health tax reforms with the pursuit of universal health coverage and the Sustainable Development Goals.