ACEP boss casts doubt on effectiveness of emissions levy

Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), has voiced skepticism regarding the efficacy of Ghana's new vehicle tax in curbing carbon emissions.

Boakye argues that the implementation of the Emissions Levy Act, 2023 (Act 1112) will not only fail to mitigate carbon emissions but also incentivize individuals to circumvent payment of the tax.



Read full article/> Expressing concern, Boakye emphasized that the new levy could potentially lead to a decline in government revenue. He asserted that imposing taxes on vehicles would not deter people from driving, as mobility remains essential for daily life.

"They know clearly that it's not about carbon. This is not going to prevent anybody from driving. They know you don't have a choice. You will have to pay for it. The carbon will still be generated because the Ghanaian will have to move from one point to the other. There's no way you are going to prevent people from polluting," Boakye remarked.

Furthermore, Boakye criticized the government's approach, suggesting that the taxation strategy unfairly burdens Ghanaians. He argued that if the government seeks to bolster tax revenue, it should target specific activities rather than introducing a new vehicle tax.

Highlighting the existing taxation structure, Boakye pointed out that drivers already face taxes on the fuel they purchase to operate their vehicles. He underscored the government's insensitivity to the financial strain imposed on citizens, particularly those who rely on driving as their primary mode of transportation.

“So, if you now say that after taking all those taxes, the road fund tax and all of it, you still want to now find ways around the same transportation value chain to tax them, you are not just being sensitive to the same Ghanaian who is driving and has no option but to drive. You find ways to tax them at all cost that is not being sensitive,” Boakye added.