Executive Director of Africa Centre for Energy Policy (ACEP), Benjamin Boakye says that the new vehicle tax will not reduce carbon emissions.

According to him, the implementation of the Emissions Levy Act, 2023 (Act 1112) will not only fail to reduce carbon emission but will also encourage people to avoid paying the tax.

The Executive Director stated that the new levy may result in loss of revenue for the government and that implementing the new taxes on vehicles will not prevent anyone from driving.

"They know clearly that it's not about carbon. This is not going to prevent anybody from driving. They know you don't have a choice. You will have to pay for it. The carbon will still be generated because the Ghanaian will have to move from one point to the other. There's no way you are going to prevent people from polluting."

Mr. Boakye added that, the government is simply trying to take advantage of Ghanaians by taxing them more.

He added that if the government wants to raise tax revenue, it should implement taxes on specific activities rather than implementing a new vehicle tax.

According to him, in addition to the new vehicle tax, drivers are taxed on the fuel they buy to be able to operate their vehicles.

“So, if you now say that after taking all those taxes, the road fund tax and all of it, you still want to now find ways around the same transportation value chain to tax them, you are not just being sensitive to the same Ghanaian who is driving and has no option but to drive. You find ways to tax them at all cost that is not being sensitive.”

Background

The Ghana Revenue Authority (GRA) has announced the commencement of the implementation of the Emissions Levy Act, 2023 (Act 1112) from Thursday, February 1, 2024.

According to them, the Act will impose a levy on carbon dioxide equivalent emissions on internal combustion engine vehicles.

The GRA emphasised that the move aligns with the government's commitment to addressing greenhouse gas emissions.