Eco-friendly transport: Government to introduce new tax for petrol, diesel vehicles

The Ghanaian government is set to introduce a new annual tax of GHC100 per owner of petrol and diesel vehicles.

The proposed bill, expected to be presented in Parliament, aims to incentivise the adoption of eco-friendly energy sources for vehicles.

This initiative aligns with the government's commitment to climate-positive actions and efforts to reduce carbon emissions.

In addition to the individual vehicle tax, companies will be required to pay GHC100 for every tonne of carbon dioxide emitted.

The move follows the recent announcement of a zero VAT rate on imported electric vehicles in the 2024 budget.

Finance Minister, Ken Ofori-Atta had previously indicated the government's intention to expand the Environmental Excise Duty to cover plastic packaging, industrial emissions, and vehicle emissions.

While the government frames the proposed tax as a step toward environmental sustainability, the Minority Leader, Cassiel Ato Forson, has expressed concerns about its potential impact.

He argued that the tax, applicable to commercial vehicles, private vehicles, ambulances, 'okadas,' 'aboboyaas,' and more, could exacerbate the economic challenges already facing the country.

Mr. Forson had earlier criticised the tax waiver on electric vehicles, urging the government to focus on creating an enabling environment for the use of electric vehicles rather than hastily implementing taxes.