Unions, Business Groups Pile Pressure On Government To Scrap Emissions Levy: "Avenue For Corruption"

• Some business groups and NGOs in Ghana have been voicing their opposition to the emissions levy
• The Ghana Union of Traders Association, for example, said the emission levy would contribute to double taxation
• The Executive Secretary for the Importers and Exporters Association of Ghana, Sampson Asaki Awingobit, told YEN.com.gh the tax was redundant

A number of unions and groups have come out in opposition to the emissions levy.

Some groups that have opposed the levy are the Food and Beverages Association of Ghana, the Ghana Union of Traders Association, Penplusbytes and the Importers and Exporters Association.

The levy has generally been described as anti-business by these groups.

For example, the Ghana Union of Traders Association said the emission levy would contribute to double taxation.

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The Food and Beverages Association urged the government to consider the struggles of the business community in the wake of the COVID-19 pandemic.

“The tax is going to simply raise the cost of production, create an avenue for corruption and disturb the already acidic business environment.”

The Executive Secretary for the Importers and Exporters Association of Ghana, Sampson Asaki Awingobit, told YEN.com.gh his group was firmly against the tax.

Awingobit also reiterated the double taxation concerns.

“Ghanaians are already paying sanitation levy and pollution levy, and why do come back and say we should pay an emissions levy?"

On February 1, 2024, the Ghana Revenue Authority commenced the implementation of the Emissions Levy Act.

The Act will impose annual and monthly levies on carbon dioxide equivalent emissions on internal combustion engine vehicles, among others.

The government has already backed away from the implementation of the unpopular 15% VAT on electricity purchases, according to reports.

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The tax sparked agitation from some unions. Organised labour said it would protest nationwide against the 15% VAT on Electricity on February 13, 2024.

Parliament passes new revenue bills

In April 2023, YEN.com.gh reported that Parliament passed three major revenue bills to improve Ghana's economy.

The new bills were the Growth and Sustainability Levy Bill of 2022, the Excise Duty Amendment Bill of 2022 and the Income Tax (Amendment) Bill of 2022.

Parliament, however, did not pass these bills unanimously because of stiff opposition from the Minority.

Source: YEN.com.gh