Ghana’s Food and Beverage Association (FABAG) is urging the government to remove the emissions levy right away.
FABAG stated in a statement dated February 5 that it thinks the tax’s industry-affecting portion is extremely insensitive and anti-business.
The government implemented a new tax policy on internal combustion engine vehicles’ carbon dioxide equivalent emissions on February 1, 2024.
The Emissions Levy has faced strong opposition from various organizations, including the Ghana Private Road Transport Union (GPRTU), the Trades Union Congress (TUC), and the Ghana Union of Traders Association (GUTA).
In a statement, FABAG emphasized that the Emissions Levy is untimely and won’t produce the intended outcomes.
Even though the carbon emissions tax seems good in theory, Ghana introduced it too soon and as a result, it cannot accomplish its intended goals. All the tax will do is drive up production costs, open doors for corruption, and agitate the already hostile business climate.
For example, “How will the amount of carbon released by industries during their production processes be quantified? By whom is it measured? And how will the measurements be reported to guarantee that the proper fees are paid to the government and that there is no corruption in the data collection process? Even the system of bonded warehouses, in which government officers guard the warehouse gates every day, fell short of its predetermined goals. How can the precise measurement of carbon emissions from an industry guarantee that neither the government nor the industry participant is deceived? According to FABAG, the carbon emission tax will only benefit a select few at the expense of the general public and consumers”.
