Sustainable Development Goals

• It’s only the third African country to introduce an explicit carbon tax, after South Africa and Mauritius.
• The tax is intended to address harm associated with vehicle emissions.

Why is the government taxing emissions?

• The proposed vehicle emissions tax under the Emissions Levy Act, 2023 is one of several environmental fiscal reform measures being introduced by the government.
• Environmental tax reform aims to shift the burden of taxation to environmentally damaging activities, such as pollution.
• Ghana’s government believes the vehicle emissions tax is a more cost-effective and equitable way to make sure the polluter pays, prevent harm and protect the public.

What has been done so far to reduce air pollution?

• In 2021, the government introduced a sanitation and pollution levy on petrol and diesel under the Energy Sector Levies Act to raise revenue to improve air quality, among other goals.
• The levy accrued GHS452 million (US$55 million) in 2022.
• These measures weren’t well designed from a tax policy point of view as they were not tied to actual vehicular emissions.

How should an emissions tax work and how does the new tax work?

• Ideally, the tax should be based on the actual carbon dioxide and other pollutant emissions from a vehicle, measured in grams of carbon dioxide per kilometre.
• Each car owner would pay an annual tax for the amount of CO₂ their car emits above that threshold.
• The tailpipe emissions test would be done during the annual roadworthiness check by Ghana’s Driver Vehicle and Licensing Authority.

What are the objections to the tax and can they be accommodated?

• There is also no clear plan for what the tax will be used for after it is collected.
• Several critics, especially in the manufacturing and transport sector, say there are already too many taxes.
• But the government is under pressure to raise domestic revenue as part of its International Monetary Fund conditionalities.

How does Ghana’s tax compare with others in Africa?

• For example South Africa introduced a carbon emissions tax on vehicles in 2010.
• A 2018 study indicated that South Africa’s CO₂ emissions tax had failed to influence which new cars consumers were buying.
• Ghana’s proposed emissions tax for vehicles up to 3 litre engine capacity is not unreasonable when benchmarked to South Africa’s.

Can the tax be implemented and will it meet its objectives?

• The existing sanitation and pollution levy must first be scrapped and replaced with the vehicle emissions tax.
• The tax bands should conform to emission standards set by the Ghana Standards Authority and the vehicle licensing authority.
• Having both the sanitation and pollution levy and vehicle emissions tax operating at the same time amounts to double taxation.

What is the tax collection picture in Ghana?

• Ghana tax collection is currently around 14% of GDP.
• Its aim is to get to 18% by 2028, comparable with its peers such as Senegal, Namibia, Togo and Rwanda.

Theophilus Acheampong is affiliated with the IMANI Centre for Policy and Education in Accra, Ghana. He has also consulted for the Government of Ghana on environmental fiscal reform in a private capacity.

• NEWARK, N.J., Feb. 13, 2024 /PRNewswire/ -- Prisha Shroff, 17, of Chandler, today was named a 2024 Prudential Emerging Visionary for her inspiring commitment to improving the lives of others.
• As one of 25 Prudential Emerging Visionary winners, Prisha will receive a $5,000 award to help take her innovation to the next level.
• Prudential Emerging Visionaries recognizes young people ages 14-18 whose fresh perspectives and innovative solutions address pressing financial and societal challenges in their communities.
• The program is an evolution of Prudential's Spirit of Community Awards, which honored more than 150,000 outstanding youth volunteers over 26 years.

• This opportunity is highlighted in the white paper "From Ripples to Waves: The Value of Corporate Water Stewardship," which was unveiled yesterday at the GreenBiz 24 conference in Arizona.
• "From Ripples to Waves: The Value of Corporate Water Stewardship" discusses the value of water and serves as a call to action for businesses to address water challenges proactively.
• Delving into the practices of six companies across various sizes and sectors – including PepsiCo, Microsoft, Gotham Greens, Cargill, S&P Global, and Xylem – the white paper provides tangible examples of effective water stewardship.
• Through these examples, the report highlights how the private sector can make a demonstrable contribution to the achievement of Sustainable Development Goal (SDG) 6: Clean Water and Sanitation for all.

• Businesses are adopting green technology & sustainability solutions to mitigate environmental impacts, comply with regulations, and adapt to changing market demands.
• Managed services are significantly impacting the Green Technology & Sustainability Market by providing businesses with outsourced, expert management of their IT infrastructure and services.
• In the Asia Pacific region, the adoption of green technology & sustainability is on the rise, driven by several key factors.
• Green Technology & Sustainability Market Advantages:
  Utility expenses can be lowered over time by reducing energy use with the use of various green technologies, like solar panels and energy-efficient appliances.