In view of this challenge, the World Health Organization (WHO) has suggested a simple but effective path towards making countries self-reliant. Increasing taxes on tobacco, alcohol and high sugar drinks.
What is the focus of WHO?
WHO's focus is on two levels. First, in the short term, to ensure that people continue to receive essential health services, such as treatment, vaccination and medicines.
Second, in the long term, to explain to the governments how to raise money for the health sector from their own country's resources, so that they do not have to wait for foreign help every time. WHO believes that a strong health system is one that stands on its own feet.
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What are health taxes?
Health taxes are taxes that are imposed on products that harm health like tobacco, alcohol and sugary drinks. The purpose of these taxes is not only to fill the government treasury, but it has two big benefits, first, people use these things less. Second, the government gets extra money for health services. This means that with a single step the disease reduces and the resources for treatment also increase.
How effective are health taxes in reducing disease?
When cigarettes, alcohol or sugary drinks become expensive, people buy them thoughtfully. Many people even leave them. This reduces the risk of serious problems like cancer, heart disease, diabetes, liver disease. The direct benefit of reducing diseases is that the burden on hospitals is reduced, doctors and resources are used properly and the health system becomes stronger.
Example of Philippines:
Philippines made major changes in taxes on tobacco and alcohol in the year 2017. Its result was shocking. The government's earnings increased more than five times compared to before. This money was used to strengthen the country's National Health Insurance Scheme. About 1.5 crore poor families got the benefit of health insurance. This example shows that with the right policy, both health and social protection can be strengthened together.
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Why is this step necessary for governments?
On one hand, health tax keeps people away from harmful habits, while on the other hand, the government gets permanent and reliable income for the health sector. With this money, better hospitals, cheaper medicines and stronger health facilities can be created.
WHO clearly believes that health taxes can make countries self-reliant in the long run, where the government has resources and common people can get better treatment.
