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Palau Ring-Fences Tobacco & Alcohol Taxes To Fight NCDs

(February 25th, 2016, New York, USA) – Vital Strategies today congratulated the Western Pacific island nation of the Republic of Palau on the passage of a new law to fund efforts to reduce non-communicable diseases (NCDs).

José Luis Castro, President and Chief Executive Officer of Vital Strategies, said: “Funding sustainable development was one of the most urgent topics of debate in 2015. At the Third International Conference on Financing for Development in Addis Ababa, Ethiopia, Heads of State and Ministers of Finance, Foreign Affairs and Development, along with global experts, endorsed increasing tobacco taxes as a key strategy to reduce tobacco consumption and the global burden of non-communicable diseases (NCDs). Palau has become one of the first countries – including Thailand and Gabon – to pass legislation that enshrines this concept in law.

“Palau’s new law (RPPL 9-57) ring-fences 10 percent of alcohol and tobacco taxes to help address NCDs. The money will be channeled into NCD prevention interventions through the Palau’s National Coordination Mechanism. What’s even more impressive is that Palau has taken a true multi-sectoral approach that includes a wide variety of stakeholders and it has established these mechanisms in order to deliver a documented national strategic plan to combat NCDs. In short, Palau is one of the first countries to adopt a truly holistic approach to funding and taking coordinated action to reduce NCDs and improve health.

“With a population of just 21,000 Palau may not be the most populous country in the world, but it deserves recognition as a new global leader in the fight against NCDs. We congratulate its leaders, particularly President Remengesau, on their vision and commitment to improving the lives of Palauans and call for other countries to follow Palau’s excellent example.”

Palau’s Commitment to Fighting NCDs

The law builds upon a published national NCD Prevention and Control Strategic Action Plan and the establishment last year of a National Coordination Mechanism to coordinate government action to reduce NCDs. A coordinating Committee includes representatives from different government ministries and agencies and cooperates closely with NGOs, the private sector and civil society.

In 2015, Palau’s President Thommy E. Remengesau Jr. stated that combatting NCDs was a priority because: “Preventable and premature deaths caused by NCDs pose heavy burdens on individual families and clans. NCDs also create challenges for our already resource constrained health system, undermine our economic development, are a catalyst for poverty and affect our social fabric.”

Palau is prioritizing tobacco control in the fight against NCDs because high levels of tobacco use risk an unsustainable health and economic burden from tobacco-related NCDs. Smokeless tobacco in the form of betel nut with tobacco is consumed by 60 percent of adult Palauans. According to The Tobacco Atlas, rates of smoking are higher than average for a middle-income country: 37.2 percent of adult men, 27 percent of adult women, 51.9 percent of boys and 31.1 percent of girls smoke cigarettes. Palau’s strategic plan aims to deliver full compliance with the WHO Framework Convention on Tobacco Control and a 30 percent reduction in tobacco use by 2020. 

About Vital Strategies

Vital Strategies envisions a world where every person is protected by a strong public health system.  Our team combines evidence-based strategies with innovation to help develop sound public health policies, manage programs efficiently, strengthen data systems, conduct research, and design strategic communication campaigns for policy and behavior change.  Vital Strategies was formed when The Union North America and World Lung Foundation joined forces.  It is an affiliate of The International Union Against Tuberculosis and Lung Disease (The Union).

For more information, please visit vitalstrategies.org or Twitter @VitalStrat

For more information or to arrange an interview, please contact
Tracey Johnston, Vital Strategies, at +44.7889.081.170 or tjohnston@vitalstrategies.org