In a statement dated February 5, FABAG said it believes the aspect of the tax that affects the industry is highly insensitive and anti-business.

On February 1, 2024, the government introduced a new tax policy on carbon dioxide equivalent emissions on internal combustion engine vehicles.

The Ghana Union of Traders Association (GUTA), the Trades Union Congress (TUC), Ghana Private Road Transport Union (GPRTU), among others, have strongly opposed the Emissions Levy.

FABAG in its statement insisted that the Emissions Levy is premature and will not achieve its desired results.

“In as much as the Carbon Emissions tax sounds nice in theory, its introduction is premature in Ghana and hence cannot achieve its desired objectives. The tax is going to simply raise the cost of production, create avenues for corruption and disturb the already acidic business environment.”

“For instance, how are carbons emitted by industries through their manufacturing processes going to be measured? Who measures it? And how will the measurement be reported to ensure that there is no corruption in the collection of the data and right fees are paid to the government? Even the bonded warehouses system where officers of govemment daily man the gates of the warehouses failed in delivering its set-up objectives. How can carbons emitted by an industry be measured accurately to ensure that neither the government nor the industrial player is cheated? The Carbon Emission tax is just going to make a few people rich at the expense of the consumer and the Republic,” FABAG added.

Read FABAG’s full statement below: