Parliament passes landmark Emissions Levy Bill before rising for Christmas

Parliament has passed the Emissions Levy Bill, 2023, as part of efforts to reduce Ghana’s Carbon Dioxide Emissions and help raise some domestic revenue for the government.

The bill is to promote the use of eco-friendly technologies and green energy, improve environmental management while controlling general levels of air and water pollution.

This will be done through the imposition of a levy on Carbon Dioxide equivalent emissions from specified sectors and emissions from internal combustion engine vehicles in the country.

The Government, in a bid to strengthen the global response to the threat of climate change in accordance with the Paris Agreement and the United Nations Framework Convention on Climate Change, intends to introduce an Emission Levy, a measure to mobilise some domestic revenue.

Mr Kwaku Agyeman Kwarteng, the Chairman of the Finance Committee of Parliament, reporting to the plenary, said the Emissions Levy Bill sought to control adverse health effects of environmental pollution caused by Carbon Dioxide in line with international conventions.

“When the Bill is assented to by the President, the Carbon Dioxide Emissions taxes for motorcycles and tricycles will be GH¢75.00 per annum, while motor vehicle buses and coaches up to 3,000cc will pay GH¢150.00 per annum,” he said.

On the other hand, cargo trucks and articulated trucks will be paying GH¢300.00 per annum.

Touching on the importance of the Bill, Mr Kwarteng said the Committee was informed that the proposed levy was expected to promote the use of eco-friendly technology and green energy by manufacturers, mining companies, oil and Gas firms, electricity and heating companies.

He said it would also improve environmental management while controlling general levels of air and water pollution.

The National Democratic Congress (NDC) members on the Committee expressed concerns over the impact of the Levy on the ordinary Ghanaian and its potential impact on the cost of doing business in the country.

They, therefore, expressed their inability to support the Bill due to its potential impact on the general living conditions of the people.

Dr Cassiel Ato Baah Forson, the NDC Minority Leader, said the Emissions Levy would impose a tax on every vehicle that used internal combustion engines such as commercial motorbikes (okada) tricycles (pragyia), commercial taxis including the ride hailing services, commercial buses (trotro) and articulated trucks, which would pay GH¢100.00 tax every year.

“Mr Speaker, so every car, as long as the car or the motor has been registered at the DVLA (Driver and Vehicle Licensing Authority) you will pay GH¢100.00 a year,” he said.

“Mr Speaker, this is regressive in the sense that the person using V8 is paying the same GH¢100.00 as the person using a motorbike or okada ….”

He noted the NDC Minority would oppose the tax because it was a very dangerous tax.

Mr Isaac Adongo, the Ranking Member on the Finance Committee said: “Mr Speaker, we understand this will help Ghanaians to make the switch from internal combustion engines to electric vehicles, for you to buy an electric vehicle into Ghana today, you will need to reconfigure the electrical system in your house to charge that vehicle….”

He said the Minority would not support the Bill and expressed the hope that the Government would listen and stop imposing taxes on the public.

Dr Kwaku Afriyie, the Minister of Environmental, Science, Technology and Innovation, said if Ghana transitioned to e-vehicles, it would prevent a lot of health diseases.

He said there were e-vehicles running in the country now, particularly buses, and that the Ministry of Transport was piloting a number of electric charging stations for them to effectively operate.