[et_pb_section fb_built=”1″ admin_label=”!!! PLEASE DO NOT EDIT !!!” _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][et_pb_row admin_label=”!!! PLEASE DO NOT EDIT !!!” _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”TO BE EDITED – SUMMARY – Click on the WHEEL icon to open the textarea where you can paste or type your summary. The summary condenses the main points for the news that starts below. The summary is in bold and not longer than 300 characters, including spaces. The counter at the bottom can help.” _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||20px||false|false” global_colors_info=”{}”]<\/p>\n
Higher taxes on tobacco, alcohol, and sugary drinks could raise $2.1 trillion for low- and middle-income countries while improving public health and reducing reliance on foreign aid, says the IMF.<\/strong><\/p>\n [\/et_pb_text][et_pb_text admin_label=”TO BE EDITED – TEXT OF THE NEWS – BLOCK 1 – Click on the WHEEL icon to open the textarea where you can paste or type your news. PLEASE USE ONLY THE FEATURED IMAGE FUNCTION on your right column to add the image.” _builder_version=”4.21.0″ _module_preset=”default” custom_padding=”||1em||false|false” global_colors_info=”{}”]<\/p>\n A new Finance & Development\u00a0<\/a>article by Masood Ahmed and Minouche Shafik makes a strong case for increasing health taxes on tobacco, alcohol, and sugary drinks. These taxes, the authors argue, not only help reduce rates of noncommunicable diseases such as cancer, diabetes, and stroke, but can also generate substantial revenue\u2014an estimated $2.1 trillion over five years for low- and middle-income countries. This could account for 40% of their public health spending and significantly ease fiscal pressure amid slowing global growth and reduced aid.<\/p>\n Evidence from countries like the Philippines<\/a> and Lithuania<\/a> demonstrates how targeted tax hikes can expand fiscal space and fund universal health services. Importantly, the article notes that health taxes are progressive\u2014lower-income groups reduce consumption more in response to price increases, leading to better health outcomes and lower personal healthcare costs.<\/p>\n