“3 by 35” Initiative

The World Health Organization (WHO) has launched the “3 by 35” initiative, urging countries to significantly increase taxes on tobacco, alcohol, and sugary drinks. The goal is to raise their real prices by at least 50% by 2035 through health taxes.

Objectives of the “3 by 35” Initiative:

• Curb Chronic Diseases: The primary aim is to reduce the consumption of these products, which are major contributors to non-communicable diseases (NCDs) like heart disease, cancer, and diabetes. NCDs account for over 75% of all deaths worldwide.
• Generate Public Revenue: Health taxes are also intended to generate substantial public revenue that can be reinvested into healthcare, education, and social protection. A 50% price increase could prevent 50 million premature deaths over the next 50 years and potentially raise US$1 trillion over the next decade.
• Global Collaboration: Led by WHO, the initiative brings together global partners to provide technical expertise, policy advice, and real-world experience to help countries implement these health taxes effectively.

India’s Context and Challenges:

• Tobacco Taxation:
  • India has implemented tobacco taxation under the GST framework, with a 28% GST and an additional compensation cess on cigarettes and select products.
  • However, bidis (primarily consumed by low-income groups) and smokeless tobacco (SLT) (used by over two-thirds of tobacco users) remain under-taxed.
  • Experts note that India’s overall approach to tobacco taxation is fragmented and revenue-centric, lacking a strong public health framework.
• Alcohol and Sugary Drinks: India’s current approach to taxing alcohol and sugar-sweetened beverages also exhibits a fragmented, revenue-centric model.
• Need for Coherent Public Health Framework: The current tax policies in India for these products are criticized for lacking a coherent public health framework, suggesting a need for a more integrated strategy to align taxation with public health goals.

(Source: IE)