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Despite being progressive, the Institute of Climate and Environmental Governance (ICEG) has stated that there is uncertainty surrounding the implementation of the emission levy, which began on Thursday, February 1, 2024.
Noting that “countries like Germany and Italy use almost 95%” of their emissions taxes “to finance their green projects and initiative but there is the risk in Ghana that, the money will be spent on unrelated issues,” ICEG issued a warning about the possibility of financial mismanagement.
It was further stated that low-CO2 emitting cars should not have to pay the same tax as high-emitting cars.
“Our position is anchored on the school of thought that different motor vehicles emit CO2 at varying levels depending on the year of make of the vehicle and its maintenance regime. This makes it unjust for low polluters to pay the same rate as high polluters”.
It suggested creating an emissions fund to ensure appropriate responsibility.
“Despite the progressive nature of the levy, ICEG is concerned about the apparent lack of commitment by the government beyond the imposition of the levy, to investing the expected revenue on financing green infrastructure”, the group said in a statement. It added: “Based on the analysis of the Act, there is no stated portfolio established to use the revenue generated to finance our energy transition efforts”.
According to ICEG, in order to guarantee the continuous use of cleaner vehicles, a progressive tax structure approach that fosters equity and fairness should be taken into consideration. Therefore, rates for emitters using motor vehicles with internal combustion engines up to 3000 cc should be revised. Owners of cars made within the last five years shouldn’t pay the same as those whose cars were made more than five years ago, regardless of the engine size.”
The levies are as follows:
- Motorcycles and tricycles – GHS75 per annum
2.Motor vehicles, buses and coaches up to 3000 cc – GHS150 per annum
3.Motor Vehicles, buses and coaches above 3000 cc – GHS300 per annum
4.Caro trucks and articulated trucks – GHS300 per annum
The Emission Levy Act, 2023 (Act 1112) was enacted to levy a tax on internal combustion engine vehicles’ carbon dioxide equivalent emissions.
The government claims that the levy’s implementation will reduce greenhouse gas emissions, encourage the use of green energy and eco-friendly technology, and enhance environmental management while lowering overall air and water pollution levels.
A road use certificate must be issued by the Driver and Vehicle Licensing Authority (DVLA) and other testing centers in accordance with section 4(4) of Act 1112, and before doing so, they must obtain proof that the levy has been paid.
Therefore, it has been recommended to all vehicle owners to register and pay the levy exclusively on the Ghana.gov platform.
The government has been urged to remove the emission levy by Henry Nana Boakye, popularly known as Nana B, the National Organiser of the ruling New Patriotic Party (NPP).
In order to combat climate change, he claims that developed nations that have made progress in using electric cars are usually the ones subject to emission levies. According to him, the prevalence of electric cars in Ghana is not high enough to support putting such a tax on gasoline and diesel vehicles.
Nana B declared that he supports the immediate removal of the levy and that his position is in line with the New Patriotic Party’s.
On Friday, February 2, 2024, Nana B made these remarks during a broadcast on Peace FM, a station based in Accra.
It is important to remember that on Thursday, February 1, 2024, the emission levy went into force.
According to the government, the purpose of the emission levy is to reduce greenhouse gas emissions, encourage the use of green energy and eco-friendly technology, and enhance environmental management while limiting overall pollution levels in the air and water.
A road use certificate must be issued by the Driver and Vehicle Licensing Authority (DVLA) and other testing centers in accordance with section 4(4) of Act 1112, and before doing so, they must obtain proof that the levy has been paid.
Therefore, it has been recommended to all vehicle owners to register and pay the levy exclusively on the Ghana.gov platform.
Source: Ghanatodayonline.com
