Initiative aims to raise prices on tobacco, alcohol, and sugary drinks by at least 50% through health taxes over next 10 years.

• Launched initiative can mobilize an additional US$ 1 trillion in public revenue globally over next decade.
• This Initiative functions as a collaborative alliance with coordinate efforts from coalition of development partners, civil society, academic institutions, and national governments.

What is Health Tax?

• Levied on products that have a negative public health impact e.g. Tobacco, Alcohol etc.
• WHO recommends taxation as one of the most cost-effective tools for addressing population levels of obesity and other related non-communicable diseases (NCDs).

Need for Health Tax

• Health Impact: Consumption of tobacco, alcohol, and sugary drinks fuels the NCD epidemic which accounts for over 75% of global deaths.
• Economic Impact: These products create negative externalities (costs to others) and internalities (hidden costs to consumers).
  • Tobacco use alone costed the global economy US$ 1.4 trillion in 2012.
• Revenue Generation: 50% tax can 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.
• Promote Equity: As NCDs impact lower-income populations disproportionately.

Steps taken in India for curbing consumption of Unhealthy Products

• Aerated beverages in India are taxed at 28% GST and an additional 12% Compensation cess. 
• High-fat sugar Salt (HFSS) foods in India are taxed at a 12% GST rate.
• FSSAI limits Trans fatty acids (TFA) in food products to 2% by mass of total oils and fats.