Increase tobacco taxes to finance sustainable development, says Addis Ababa meet

Global leaders have endorsed increasing tobacco taxes as “a key strategy” to reduce tobacco consumption and the global burden of non-communicable diseases (NCDs), and help finance sustainable development.

Their recommendations came at the just concluded UN conference in Addis Ababa ahead of the Sep summit, where the post-2015 sustainable development agenda will be adopted for the next 15 years.

An action plan was agreed upon at the conference following seven months of extensive deliberations at different level on how governments can finance progress towards achieving development objectives, including a reduction in the burden of NCDs.

Heads of State, ministers of finance, foreign affairs, and development along with global experts attended the Addis Ababa meet on ‘Financing for Development’.

They agreed on a combination of domestic revenue streams such as higher tobacco taxes, together with international development assistance and other innovative resourcing methods, will be required to meet all proposed development goals by 2030.

The NCD Alliance, the Framework Convention Alliance, The Union, World Lung Foundation and the Campaign for Tobacco-Free Kids applauded this decision, which they said “lends weight to the critical importance of countries raising tobacco taxes”.

Other recommendations include calling for universal healthcare, interventions to prevent NCDs, access to affordable medicines, and increased R&D for medicines and vaccines.

Executive Director of The Union José Luis Castro said global organisations urge delegates to the UN summit in Sep “to include the strategy of raising tobacco taxes – including directing funds to programs to reduce the burden of NCDs – as part of the new Sustainable Development Goals (SDGs).”

“It’s a win-win for delivering progress in public health and in furthering countries’ sustainable development objectives,” he said.

A wealth of evidence shows that high tobacco taxes help to increase domestic government revenues while simultaneously reduce tobacco use – which in turn helps to decrease the economic burden of tobacco use and NCDs.

Given current estimates of the burden of tobacco-related diseases, researchers predict that tobacco use will kill one billion people this century with a potential total economic loss of about $ 12.7 trillion over the next 20 years, or 1.3 percent of global GDP annually.

According to a recent World Health Organization report issued to coincide with the conference, “[This] significant economic toll, coupled with a reduction in productivity, can greatly increase the impact tobacco can have on a country’s poverty burden and on hindering sustainable development.”

A 2014 paper in the New England Journal of Medicine found that the raising taxes to double the price of tobacco products would raise $100 billion per year while simultaneously reduce tobacco consumption by one-third.

The newly-adopted financing framework of the Addis Ababa Action Agenda also concluded that governments should strengthen the implementation of the WHO Framework Convention on Tobacco Control, a global treaty to cut tobacco consumption.

NCDs such as chronic lung diseases, cancer, cardiovascular diseases and diabetes are placing an enormous and growing burden on developed and developing countries, it felt.

Action should be taken at all levels, domestically and internationally, to strengthen national health systems and achieve universal health care, it suggested.

By the end of 2015, all World Trade Organization members should agree to allow developing countries improved access to affordable medicines.

Developing countries should use the Agreement on Trade-Related Aspects of Intellectual Property Rights to increase access to affordable medicines.

Research and development for new vaccines and medicines should be supported, as well as preventive measures and treatments for NCDs and communicable diseases - particularly those that disproportionately impact developing countries, according to the Addis Ababa call.