The Africa Centre for Energy Policy (ACEP) says that the new vehicle tax [Emissions Levy Act, 2023 (Act 1112)] will not reduce carbon emissions.
According to the Executive Director of ACEP, Benjamin Boakye, implementing the bill will not only fail to reduce carbon emissions but will also encourage people to avoid paying taxes.
The Ghana Revenue Authority (GRA) announced the levy implementation on Thursday, February 1, 2024.
However, Mr Boakye contends that the new levy may result in a 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 another. There’s no way you are going to prevent people from polluting.”
Mr Boakye added that the government was trying to exploit 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, drivers are taxed on the fuel they buy to operate their vehicles in addition to the new vehicle tax.
“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 costs that are not being sensitive.”
The GRA said the levy is 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.
It called on all vehicle owners to adhere to the directive and fulfil their obligation by paying the Emissions Levy stipulated in Act 1112.
The GRA stated that individuals obligated to pay the Emissions Levy must complete registration and make levy payments exclusively through the ghana.gov platform.
“Under section 4(4) of Act 1112, a person required to issue a road certificate (Driver and Vehicle Licensing Authority (DVLA) and other testing centres) shall demand evidence of payment of the levy before issuing a Road Use Certificate.”