Raising health taxes is a SMART policy because it:
S
aves lives
Tobacco, alcohol and sugar-sweetened beverages taxes are all effective and cost-effective ways of reducing consumption, preventing diseases and injuries and saving lives.
M
obilises revenue
Health taxes can be a revenue booster over the short and medium term. Importantly, health taxation is also more inclusive and pro-growth than alternative sources of revenue.
A
ddresses health inequities
In lower- and middle-income countries, lower socioeconomic status is associated with higher risk of noncommunicable diseases and higher rates of tobacco use and alcohol consumption. Accordingly, the net impact of health taxes is progressive once one fully accounts for the distribution of health benefits, income losses averted and reductions in catastrophic healthcare costs.
R
educes burdens on health systems
An ounce of prevention is worth a pound of cure: health taxes are also a high-return investment in averted healthcare expenditure and increased workforce participation.
T
argets noncommunicable disease risk factors for the achievement of Sustainable Development Goals.
By targeting noncommunicable disease risk factors with health taxes, countries can progress their achievement of Sustainable Development Goal 3.4, which calls for a one-third reduction of premature mortality from noncommunicable diseases by 2030.