The Emissions Levy Act, 2023 (Act 1112), which places a tax on internal combustion engine cars’ carbon dioxide equivalent emissions, is set to go into effect today, according to the Ghana Revenue Authority (GRA).
According to the government, the purpose of the levy is to promote initiatives to reduce greenhouse gas emissions and encourage the use of green energy and eco-friendly technology.
The type of vehicle and engine capacity determine the amount of the tax.
Motor vehicles, buses, and coaches up to 3000 cubic centimetres are paid GHC150 annually, while motorcycles and tricycles will pay GHC75 annually.
Also, cargo trucks, articulated trucks, buses, and coaches with a volume greater than 3000 cubic centimetres are required to pay GHC300 annually.
GRA has noted that vehicle owners are to register and pay the emissions levy on the Ghana.gov platform.
By way of enforcement of the levy, the Driver and Vehicle Licencing Authority (DVLA) would require evidence of payment of the levy prior to the renewal of roadworthy certificates.
Last month, public transport unions cited the proposed imposition of the emissions levy as part of the reasons for their demand for a 30% upward review of fares.
However, the transport ministry, in a statement, said their demands are subject to negotiation.
