New analysis shows that contrary to the perception that it would hit the poorest the most, it is these sections that will gain
Taxes on soft drinks, alcohol and tobacco are effective in countering rising rates of non-communicable diseases (NCDs) worldwide.
According to an analysis published in The Lancet, taxes on unhealthy products have the potential to produce major health gains among the poorest in society. This is the section that bears the brunt of NCDs not just because of lack of access to quality medical care but also face impoverishment because of catastrophic medical expenses.
High quality evidence from 283 international studies including data from India, China and Brazil, shows that low socio economic status is consistently associated with higher rates of non-communicable disease
Non-communicable diseases such as stroke, heart disease, diabetes, chronic respiratory disease and cancer are responsible for 38 million deaths each year, 16 million of these are among people aged under 70. The Sustainable Development Goal NCD target (SGD 3.4) is to reduce deaths from NCDs by a third by 2030 and promote mental health.
High quality evidence from 283 international studies including data from India, China and Brazil, shows that low socio economic status is consistently associated with higher rates of non-communicable disease in low and middle income countries.
“Non-communicable diseases are a major cause and consequence of poverty worldwide. Responding to this challenge means big investments to improve health care systems worldwide, but there are immediate and effective tools at our disposal. Taxes on unhealthy products can produce major health gains, and the evidence shows these can be implemented fairly, without disproportionately harming the poorest in society,” says Dr Rachel Nugent, RTI International (Seattle, USA) and Chair of The Lancet Taskforce on NCDs and economics.
The Lancet Taskforce on NCDs and economics is a partner of the WHO’s Independent High-Level Commission on NCDs, and will be launched at the WHO NCD Financing meeting in Copenhagen (9-11 April).
In a linked Comment, American economist Larry Summers, who co-chairs the Task Force on Fiscal Policy for Health with WHO Global Ambassador for Non-communicable Diseases Michael R. Bloomberg, writes that the analysis provides more evidence to dispel notions that are outdated, misleading, or simply wrong. He wrote that it “helps clear the air over one of the most common obstacles to taxing the consumption of goods that kill us—namely, the argument that such taxes are regressive.”
The Task Force on Fiscal Policy for Health is also a partner of the High-Level Commission.
Professor Franco Sassi, author, Imperial College Business School (London, UK) adds: “No amount of money, however small, is trivial for low income households, especially in low income countries. But, the extra tax expenditures involved should not deter governments from implementing a policy that may disproportionately benefit the health and welfare of lower-income households. Governments must carefully assess the available evidence from their own countries and look at the tax system as a whole, including investing tax revenue in pro-poor programmes or subsidising healthy alternative products.”
