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Thursday, July 10, 2025

WHO Proposes 50% Increase in Alcohol Tax

### WHO’s Bold Initiative for Health Taxation

The **World Health Organization (WHO)** is setting a bold course aimed at improving global health through financial incentives. Recently, at the UN Finance for Development conference in Seville, Spain, WHO unveiled its ambitious “**3 by 2035**” initiative. The central goal? To encourage countries worldwide to increase taxes on alcohol, sugary drinks, and tobacco by **50% over the next decade**. This initiative hopes to raise a staggering **$1 trillion in public revenue** through legislative actions and public education.

### The Vision Behind “3 by 2035”

This initiative breaks down its objectives into three primary benchmarks:

1. **Reducing harmful consumption**: The price hikes aim to deter individuals from purchasing these harmful products, making them less financially accessible.
2. **Generating revenue for public good**: Funds raised through these taxes could be reinvested into health care, education, and social protection.
3. **Fostering political alliances**: An effective roll-out requires collaboration among ministries, civil society, and academic institutions to build a strong political will behind the change.

### The Statistical Backbone

WHO’s proposition is heavily rooted in data, making a compelling case for action. A study referenced by the organization suggests that a **50% price increase** on tobacco, alcohol, and sugary beverages could prevent **50 million premature deaths over the next half-century**. This prediction draws on successful precedents from tobacco taxation, with nearly **140 countries** boosting these taxes in the last decade, yielding notable health benefits.

### Voices From the WHO

Dr. Jeremy Farrar, WHO’s Assistant Director-General for Health Promotion and Disease Prevention and Control, highlights the effectiveness of health taxes. He stresses, “**Health taxes are one of the most efficient tools we have**. They cut the consumption of harmful products and create revenue for governments.” The urgency of this call to action cannot be understated, as it seeks immediate legislative attention and implementation.

### Political Pushback in the U.S.

While WHO’s initiative seeks global implementation, the reaction in the **United States** remains uncertain. Recent discussions around federal alcohol guidance reveal tensions among policymakers and public health advocates. An advisory from the U.S. Department of Health and Human Services linked alcohol consumption to several types of cancer, leading to calls for updated health warnings—similar to those seen in the tobacco industry.

### The Controversy Ramps Up

This topic garnered significant political attention, especially when former U.S. Surgeon General Dr. Vivek Murthy suggested Congress mandate updated labeling for alcoholic beverages. Critics, however, quickly emerged, including Rep. James Comer (R-KY), who labeled the initiative as an “**unscientific, predetermined narrative**.” Furthermore, over **100 bipartisan Congress members** urged the government to pause related studies due to perceived conflicts of interest.

### Shifting Guidelines on Alcohol Consumption

With the U.S. Department of Health and Human Services going through personnel changes, future guidelines on alcohol consumption remain in question. Reports suggest that new leadership may relax current recommendations, potentially replacing them with a more lenient stance that promotes moderate drinking rather than strict limits.

### Economic Considerations for Tax Initiatives

In an atmosphere where federal alcohol regulations appear to be softening, the prospect of significantly increasing alcohol taxes seems remote. This scenario is compounded by broader fiscal plans, such as President Trump’s proposed **Big Beautiful Bill**, which aims at large-scale tax cuts amounting to **$4 trillion**. This shift in focus reflects a political landscape where health-driven taxation may take a backseat.

### Successful Case Studies

However, WHO’s “3 by 2035” initiative may find success in other regions. For instance, Lithuania raised its alcohol taxes in **2017**, which not only generated over **$104 million** in additional public revenue within two years but also contributed to a decline in alcohol-related deaths—from **23.4 to 18.1 per 100,000**. This case exemplifies how effective tax strategies can yield tangible health benefits and revenue for public infrastructure.

### A Global Perspective

As WHO continues to champion health taxation on a global scale, the upcoming decade could witness a shift in consumption patterns across various nations. The debate surrounding these taxes presents both challenges and opportunities, placing public health at the forefront of fiscal policy discussions worldwide.

This multifaceted approach showcases WHO’s commitment to not just healthcare initiatives, but also to promoting broader economic strategies that can ultimately lead to healthier populations.

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