Increase in Taxes on Alcohol and Tobacco, Currency Levy Could Help Fund Health-Care
As per the World Health Organization, increasing taxes on tobacco and alcohol and imposing levy on foreign exchange transactions could provide funds for the health-care of a number of people across the globe, who cannot afford the same.
The WHO released its annual World Health Report today, which included that due to health-care costs, around 100 million people a year have to face impoverish conditions.
"Governments worldwide should also increase the proportion of health-care costs they cover to reduce out-of-pocket expenses for patients whose illnesses can subject them to financial catastrophe", said the report.
The reasons that contribute to increasing health care costs include aging populations, rising cases of chronic disease such as cancer and diabetes and the peaking up costs of treatments. So, in order to save millions of lives and protect a number of people from entering into poverty, there is a need to raise funds, cut direct payments and upgrade efficiency.
The WHO stated that with 50% increase in tobacco excise taxes, there would be generated $1.4 billion in 22 low-income countries and the imposition of 0.005% on currency transactions in India alone could help collecting about $370 million a year. So, these sin taxes, along with providing funds for the care of needy, would also help cutting consumption of harmful products.