Petrol and diesel vehicle owners may be required to pay a new annual tax of GH₵100 per vehicle.

The government is introducing this new tax bill in Parliament with the aim of promoting the use of eco-friendly sources of energy to power vehicles.

The initiative is part of the government’s drive towards more climate-positive actions and to offset its carbon output.

If the bill is passed, companies will also be expected to pay GH₵100 per tonne of carbon dioxide emission.

This move follows the government's decision to apply a zero-VAT rate on imported electric vehicles in the 2024 budget.

Mr. Ofori-Atta had previously announced the government's plan to expand the Environmental Excise Duty to cover plastic packaging, industrial emissions, and vehicle emissions.

Reacting to the government’s eco-tax, the Minority Leader, Cassiel Ato Forson, suggested the tax which will be imposed on all commercial vehicles, private vehicles, ambulances, 'okadas', 'aboboyaas' etc will worsen an already dire situation in the country.

He had earlier described the tax-waiver on electric vehicles as useless and had instead called on government to create an enabling environment for the use of electric vehicles instead of jumping the gun.