Petrol and Diesel Car Owners to Pay ₵100 per Year under Emissions Levy Bill

In a significant legislative move, Parliament has given majority approval to the Emissions Levy Bill, a measure designed to incentivize the adoption of eco-friendly energy sources for vehicles.

Starting January 2024, all petrol and diesel vehicle owners will face an annual charge of 100 cedis in a bid to encourage a shift towards more sustainable transportation.

The government’s initiative aligns with its broader commitment to climate-positive actions and carbon offsetting. As part of this effort, the bill introduces a levy not only on commercial and private vehicles but also on various modes of transportation, including ambulances, ‘okadas,’ and ‘aboboyaas.’

However, the Minority in Parliament opposed the bill, branding it a ‘wusie tax’ and expressing concerns about exacerbating the country’s economic challenges.

Should the President give assent to the bill, companies will also be subject to a charge of GH₵100 per tonne of carbon dioxide emitted.

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

Finance Minister Mr. Ofori-Atta had previously signaled the government’s intention to expand the Environmental Excise Duty.

This expansion would cover not only vehicle emissions but also plastic packaging and industrial emissions, showcasing a comprehensive approach to environmental taxation.

The Emissions Levy Bill’s passage underscores the government’s commitment to balancing economic considerations with a sustainable and climate-positive agenda.