The Food and Beverages Association of Ghana has joined calls for the scraping of the carbon emissions levy.

The call adds to several requests by individuals and other business groups to have the levy abolished.

In the release signed by the chairman of association, John Awuni, the association describes the tax as insensitive and totally anti-business.

“Considering the struggles of Ghanaian industries and businesses post Covid-19 vis a vis the massive new taxes introduced by the government since its assumption of power, the government should never have thought of adding another layer of tax to industry at this point in time.”

It added that the imposition of the tax will add up to cost of doing business and further compound the woes of consumers.

“The tax is going to simply raise the cost of production, create avenue for corruption and disturb the already acidic business environment”.

Also, it questioned how the government intends to measure carbon emissions among industries and how the levy will impact on industrial behaviour.

“How are carbons emitted by industries through their manufacturing processes going to be measured? Who measures it? And how will the measurement be reported to ensure that there is no corruption in the collection of the data and right fees is paid to the government? It quizzed.

The statement concluded by urging the government to invest heavily in environmentally friendly energy sources such as nuclear, solar, hydro and other renewables to reduce emissions.

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

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

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