On July 2, 2025, the World Health Organization unveiled “3 by 35,” an ambitious global campaign to increase taxes on tobacco, alcohol, and sugary beverages by at least 50% by 2035. The WHO says this tax boost could prevent 50 million premature deaths over the next five decades and generate up to US$1 trillion in revenue for health and social programs.
Why “3 by 35” Matters
Noncommunicable diseases (NCDs)—like heart disease, cancer, and diabetes—are the leading cause of death and disability worldwide and claim over 75% of deaths globally, largely due to unhealthy consumption patterns. Tobacco alone causes over 7 million deaths annually. The WHO maintains that price hikes on harmful products are one of the most cost-effective tools for cutting use and saving lives, as well as a way of raising money, as development aid is shrinking and public debt is rising.
From 2012 to 2022, nearly 140 countries raised tobacco taxes enough to push retail prices up by more than 50% and 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.. That track record proves that large-scale change isn't sci-fi and can really happen.
Revenue as Prevention
The WHO estimates the campaign could mobilize US$1 trillion over the next decade by 2035 based on evidence from health taxes in countries such as Colombia and South Africa. This would give countries essential funds for domestic health systems amid declining foreign aid and growing public debt.
"Health taxes are one of the most efficient tools we have," said Jeremy Farrar, WHO assistant director-general of health promotion and disease prevention and control. "It's time to act."
Speaking at a global health financing summit in Seville, WHO Director-General Dr. Tedros Adhanom Ghebreyesus emphasized that raising taxes on harmful products like tobacco, alcohol, and sugary drinks could help countries "adjust to the new reality" and bolster their health systems with the money raised.
His remarks come as many low- and middle-income nations face shrinking international aid, particularly due to reductions led by the United States, which crippled vital health services related to HIV, nutrition, maternal and child health, and reproductive health in many African, Asian, and Latin American countries. Notably, the U.S did not participate in the Seville conference and is currently in the process of formally exiting the World Health Organization.
An example given by WHO health economist Guillermo Sandoval showed that middle-income nations raising taxes on the product will push prices to rise from $4 today to $10 by 2035, taking into account inflation, netting huge revenue boosts.
Global Backing & Real-World Wins
The initiative is backed by Bloomberg Philanthropies, the World Bank, the OECD, and a coalition of civil society partners.
Around the world, nations are witnessing tangible outcomes from raising taxes on harmful products. In places like Colombia and South Africa, these measures have not only curbed the consumption of unhealthy goods but also boosted government revenue.
Countries including Lithuania and Sri Lanka have reported positive health and economic impacts after increasing alcohol taxes. More recently, Brazil, Vietnam, and Bhutan have also moved to hike taxes on alcoholic beverages, joining the global shift toward using fiscal policy to protect public health.
Pushback from Industry
Major beverage industry groups are pushing back against the initiative, claiming that health taxes are ineffective and may even lead to unintended consequences like increased illicit trade. Kate Loatman, Executive Director of the International Council of Beverages Associations, criticized the WHO's stance, arguing there’s “over a decade” of data showing no real impact on health or obesity from sugar-sweetened beverage taxes.
However, data from countries that implemented sugary drink taxes suggest otherwise. For instance, two years after Mexico’s first sugary sweetened beverage (SSB) tax was first adopted, there had been a 37% reduction in total volumes of drinks purchased, one study found. Furthermore, after South Africa’s 10% sugary drink tax (excluding fruit juice), sugar consumption from these drinks dropped by 57% among lower-income groups. In response, manufacturers reformulated products to reduce sugar content. This highlights both behavioral and industry-level shifts.
Three Core Strategies
“3 by 35” has a playbook of three key actions:
- Mobilize political momentum by engaging heads of state, ministries, and civil society.
- Support country-specific policy design, including legal frameworks and data guidance.
- Build commitments and partnerships for public advocacy and multisectoral accountability.
Challenges Ahead
Tax hikes in this situation are smart but not easy. Countries must navigate industry resistance, balance affordability and equity, and plug loopholes like tax exemptions.
Tying taxes directly to domestic health spending will be essential to maintaining public trust. WHO also warns that long-term investment contracts and incentives to unhealthy industries remain key roadblocks.
Broader Implications
“3 by 35” isn’t just about better taxes; it is a call for self-reliant health financing, especially in low and middle-income nations. With Official Development Assistance (ODA) shrinking, low- and middle-income countries may lean on these revenues to sustain Universal Health Coverage and other health goals.
The campaign also sends a clear signal ahead of the UN High-Level Meeting on NCDs in September 2025, reinforcing taxation as a cornerstone strategy.
Final Insight
The "3 by 35" initiative—aiming to help 75% of countries implement health taxes by 2035—is a big and bold move by the World Health Organization (WHO). It is not just talk but backed by real evidence showing health taxes work. They reduce harmful consumption and boost government revenue, making it both a public health strategy and an economic one.
The hardest part is doing the work, not just announcing it. Governments of different countries have to step up, pass laws, and stand up to industry pressure, integrating the health taxes into national policy.
The challenge has been issued. WHO is calling out world leaders: Will they do this? Or just nod at the idea and keep things business as usual?