A tax expert, Fred Awutey, is asking the government to reconsider the immediate implementation of the Emissions Levy Act, 2023 (Act 1112), emphasising a need for securing support from key stakeholders in the country.
The Act, officially took effect on 1 February 2024 and is aimed at encouraging the adoption of eco-friendly technology by imposing a levy on carbon dioxide equivalent emissions from internal combustion engine vehicles.
The implementation of the levy has, however, faced backlash from some stakeholders.
Speaking on the Big Bulletin on Thursday (1 February), Awutey highlighted the lack of consultations with major stakeholders as a crucial factor contributing to the backlash.
He said delaying the implementation of the levy would provide an opportunity for the government to work on obtaining the support of said stakeholders, such as driver unions.
Awutey stated, “I think the best thing government has to do is to delay the implantation of the tax, do a lot of observation, get the buy-in of major stakeholders like the driver unions, and once they understand the reason of this tax and get the full backing of the unions, I think that is the best way to go.”
Awutey stated that while he does not foresee a withdrawal of the Emissions Levy Act, he cautioned that resistance could escalate if the government fails to address concerns promptly.
He said, “We have to learn a lesson from the past when the luxury vehicle levy was eventually withdrawn. I do not foresee this being withdrawn, but I think that there is going to be a lot of resistance.”
Under the provisions of Act 1112, motorcycles and tricycles face an annual fee of GHC75, while motor vehicles, buses, and coaches with engines up to 3000 cc are required to pay GHC150 per annum. Vehicles exceeding 3000 cc, cargo trucks, and articulated trucks fall under a GHC300 annual levy.
To ensure seamless payment, those within the emissions levy mandate must register and pay exclusively through the ghana.gov platform. Section 4(4) of Act 1112 emphasises that entities responsible for issuing road use certificates, including the Driver and Vehicle Licencing Authority (DVLA) and other testing centres, must verify proof of levy payment before issuing a road use certificate.
Reporting by Leroy Hawkson in Accra
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