Companies, vehicle owners expected to pay GH₵100 annually for eco-tax

Petrol and diesel vehicle owners are likely to pay a new annual tax of GH₵100 per vehicle as an environmental tax.

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

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

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

The move comes at the back of 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 and industrial and vehicle emissions.

The Minority Leader, Cassiel Ato Forson, in a statement reacting to the government’s eco-tax, 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. Instead, he had called on the government to create an environment that enables people to use electric vehicles instead of jumping the gun.

Dr Forson asserted that the government’s justification for these taxes, promoting cleaner energy sources like electric vehicles, was a mere smokescreen for its true motive of generating additional revenue.

He emphasized that the government’s lack of creativity in devising effective economic policies led to indiscriminately taxing the populace.

Dr Forson also criticized the government’s decision to impose a 20% tax on ‘akpeteshie’, a local alcoholic beverage, highlighting the potential negative impact on local producers and consumers.