Parliament Approves Emissions Levy Bill, Imposing Annual Fees on Petrol and Diesel Vehicle Owners

In a decisive majority decision, Parliament has given its approval to the Emissions Levy Bill, which mandates an annual fee of 100 cedis for owners of petrol and diesel vehicles, effective from January 2024.

The government’s primary objective in presenting this tax legislation is to encourage the adoption of eco-friendly energy sources for vehicle propulsion. This measure aligns with the government’s broader commitment to undertaking climate-positive initiatives and mitigating its carbon footprint.

However, the Minority in Parliament vehemently opposed the bill, labeling the levy as a ‘wusie tax.’ They argued that the imposition of this tax on various vehicles, including commercial vehicles, private vehicles, ambulances, ‘okadas,’ and ‘aboboyaas,’ would exacerbate the already challenging economic conditions in the country.

If the President gives assent to the bill, companies will also be obligated to pay GH₵100 for every tonne of carbon dioxide emitted.

This legislative move follows the government’s recent decision, outlined in the 2024 budget, to implement a zero-VAT rate on imported electric vehicles.

Finance Minister Mr. Ofori-Atta had previously disclosed the government’s intention to broaden the scope of the Environmental Excise Duty, encompassing plastic packaging, industrial emissions, and vehicle emissions.

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