Fred Awutey, a tax expert, is pleading with the government to reevaluate the Emissions Levy Act, 2023 (Act 1112), highlighting the necessity of garnering backing from significant national stakeholders.
With an official go-live date of February 1, 2024, the Act levies a tax on internal combustion engine vehicles’ carbon dioxide equivalent emissions to promote the adoption of environmentally friendly technology.
Nonetheless, there has been opposition to the levy’s implementation from some stakeholders. Speaking on Thursday, February 1st, on the Big Bulletin, Awutey emphasized that one of the main causes of the backlash was the absence of consultations with significant stakeholders.
He claimed that postponing the levy’s implementation would give the government time to try to win over these stakeholders, like driver unions.
“Delaying the implementation of the tax, conducting extensive observation, gaining support from key stakeholders such as the driver unions, and implementing the tax only after they fully comprehend its rationale and have the unions’ full support” was Awutey’s statement.
Although Awutey does not anticipate the Emissions Levy Act being repealed, he did warn that opposition may intensify if the government does not act quickly to address concerns.
“We need to take a lesson from the past,” he stated, referring to the eventual removal of the luxury vehicle levy. Though I believe there will be strong opposition, I do not see this being withdrawn.
Act 1112 stipulates that motor vehicles, buses, and coaches with engines up to 3000 cc must pay GHC150 annually, while motorcycles and tricycles must pay a fee of GHC75. There is an annual GHC300 tax on vehicles over 3000cc, cargo trucks, and articulated trucks.
Those covered by the emissions levy mandate must register and make payments only through the ghana.gov platform to guarantee a smooth payment process. Act 1112’s Section 4(4) emphasizes that before granting a road use certificate, organizations in charge of doing so, such as the Driver and Vehicle Licencing Authority (DVLA) and other testing facilities, must confirm that the levy has been paid.
