December 19, 2025
Overview:
Taxes on products that harm health, such as tobacco, alcohol, and sugar-sweetened beverages, can reduce preventable disease while also generating government revenue. This One Health Trust collaborative study explores how increasing these taxes could support public health and social programs, especially in countries facing tight budget constraints.
The Question:
How much additional revenue could governments raise by increasing taxes on tobacco, alcohol, and sugary drinks, and how might this vary across countries and income levels?
The Findings:
The researchers found that increasing excise taxes could generate substantial new government revenue worldwide:
A 20 percent price increase could raise nearly US$389 billion in additional revenue each year.
A 50 percent price increase could raise almost US$685 billion annually.
Lower-income countries would generate more revenue relative to their health spending than higher-income countries, making these taxes especially impactful where resources are most limited.
The findings show that health taxes are a powerful, underused policy tool that can both improve health outcomes and create fiscal space for health and social investments, particularly in low- and middle-income countries.
Read the article in BMJ Global Health here.
