Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), has asserted that the recently introduced vehicle tax won't effectively lower carbon emissions.

He argues that the implementation of the Emissions Levy Act, 2023 (Act 1112) not only falls short of reducing carbon emissions but could also motivate people to avoid paying the tax.

Boakye emphasizes that the new levy might lead to a loss of government revenue and contends that imposing additional taxes on vehicles will not deter individuals from driving, myjoyonline.com reports.

He stated, "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 the other. There's no way you are going to prevent people from polluting." The Executive Director further said that the government's actions amount to exploiting Ghanaians through additional taxation.

He suggested that if the government aims to increase tax revenue, it should target specific activities rather than introducing a new vehicle tax.

According to Benjamin Boakye, aside the newly introduced vehicle tax, drivers are already subject to taxation on the fuel they purchase to operate their vehicles.

“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 cost that is not being sensitive,” he mentioned.

Background

The Ghana Revenue Authority (GRA) has announced the implementation of the Emissions Levy Act, 2023 (Act 1112) starting February 1, 2024.

They stated that the Act will put levies on carbon dioxide equivalent emissions from internal combustion engine vehicles.

The GRA underscored that this action aligns with the government's dedication to tackling greenhouse gas emissions.

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