The Ghana Revenue Authority (GRA) announced that the Emissions Levy Act, 2023 (Act 1112), which imposes a levy on carbon dioxide equivalent emissions on internal combustion engine vehicles, will begin today.

ICEG has therefore suggested to the government to set up an Emission Fund to ensure a proper accountability mechanism that ensures judicious allocation of funds generated.

In a statement issued by ICEG, it advised the government to ensure that proceeds accrued from the Emission Levy are not deposited into the Consolidated Fund.

“Despite the progressive nature of the Levy, ICEG is concerned about the apparent lack of commitment by the Government beyond the imposition of the Levy, to investing the expected revenue on financing green infrastructure.”

“Proceeds accrued should not be deposited into the Consolidated Fund. The government should consider setting up an Emission Fund to ensure a proper accountability mechanism that ensures judicious allocation of funds generated. Call on the Government to slowly implement the Levy and put up the necessary institutional infrastructure for effective implementation and use of revenue.”

ICEG also called on the government to slowly implement the Levy and put up the necessary institutional infrastructure for effective implementation and use of revenue.

ICEG acknowledged the economic impact on motor vehicle owners, calling on the government to intensify public awareness to inform citizens of the environmental benefits of reducing emissions.

“The government should consider intensifying public awareness to inform citizens of the environmental benefits of reducing emissions,” ICEG said in its statement signed by Kwesi Yamoah Abaidoo, Policy Lead, Climate Finance and Energy Transition.

The Emissions Levy is in line with the government’s efforts aimed at tackling greenhouse gas emissions to promote the use of eco-friendly technology and green energy.

The levy amount varies based on the type of vehicle and its engine capacity.

Motorcycles and tricycles are required to pay GH?75 per annum, while motor vehicles, buses, and coaches up to 3000 cubic centimeters are required to pay GH?150 per annum.

Motor vehicles, buses, and coaches above 3000 cubic centimeters, cargo trucks, and articulated trucks are required to pay GH?300 per annum.