"Proposed United Nations Handbook on Health Taxes for Developing Countries Chapter 4 – General Issues in Designing Health Taxes"

At its 23rd Session in October 2021, the UN Committee of Experts on International Cooperation in Tax Matters considered note (E/C.18/2021/CRP.35) on a proposed new workstream on health taxes. Health taxes are excise taxes on tobacco, alcohol, sugar-sweetened beverages and other harmful products that are intended to reduce their consumption, thus improving health outcomes. Health taxes therefore directly support a number of the Sustainable Development Goals. The Committee decided to establish a Subcommittee on Health Taxes to undertake work on this topic that would focus on providing tax policy and administration guidance to assist countries in adopting the most effective health taxes, from both a health and revenue perspective. 

At the 24th Session of the Committee, the Subcommittee proposed a work program (E/C.18/2022/CRP.4) that would focus on producing a handbook on health taxes for developing countries. It also requested comments from the Committee on a tentative structure for that handbook and an outline of Chapter 4 – General Considerations When Designing Health Taxes. The Committee approved the proposed work plan and provided helpful comments on the handbook structure and chapter outline. 

The chapter presented in this note, which is based on the outline discussed by the Committee at its 24th Session, begins the handbook’s detailed discussion of the design of health taxes. This note is provided to the Committee for discussion and guidance at its 25th Session.