Raising Taxes on Tobacco, Alcohol and Sugary Drinks Would Save Millions of Lives, Generate Revenue

Raising Taxes on Tobacco, Alcohol and Sugary Drinks Would Save Millions of Lives, Generate Revenue

Statement of Yolonda C. Richardson, President and CEO of the Campaign for Tobacco-Free Kids and the Global Health Advocacy Incubator
September 24, 2024

Washington, D.C. - A new report released today highlights the enormous health and financial benefits of raising excise taxes on tobacco, alcohol and sugary drinks, finding that increasing the price of these health-harming products can prevent millions of deaths and generate trillions in revenue for governments worldwide, especially in low- and middle-income countries. The report, released by the Task Force on Fiscal Policy for Health, underscores the urgent need for governments around the world to implement this under-utilized policy and improve public health.

Tobacco use alone kills 8 million people around the world each year, with 10 million lives lost annually from diseases linked to tobacco, alcohol and sugary drinks, according to the report. Combined, these harmful products have economic costs of over $4 trillion, are marketed to kids and vulnerable populations and are sold by companies well aware of the harm they cause. The good news is that governments have the tools to stop these preventable deaths. The report also finds that raising taxes enough to increase prices by 50 percent on these harmful products could:

• Prevent 50 million premature deaths over the next 50 years.
• Raise $3.7 trillion over the next five years. $2.1 trillion of this revenue could be raised in low- and middle-income countries, where the health burden is greatest.

The report highlights the unique and devastating toll of tobacco use, which continues to cause the most death and illness around the world - particularly in low-and middle-income countries where 80 percent of the world's smokers live. In the past five years, cigarettes have become more affordable to nearly 90 percent of the world's smokers due to stalled progress in increasing tobacco taxes - the single most effective way to drive down rates of tobacco use.

The world's largest corporations do whatever it takes to interfere with public health policies that impact their profits from these harmful products. From aggressively marketing to kids and young people, to lobbying against the price increases desperately needed to curb the consumption of tobacco, alcohol and sugary beverages, industry interference remains one of the greatest obstacles to better public health policies around the world.

The Campaign for Tobacco-Free Kids and the Global Health Advocacy Incubator commend the work of the Task Force on Fiscal Policy for Health, co-chaired by Michael R. Bloomberg of Bloomberg Philanthropies. The report could not be clearer: urgent action is needed by governments around the world because millions of lives are at stake.