The proposed installation of an emissions levy and Value Added Tax (VAT) on electricity costs has been met with considerable opposition from the Ghana Union of Traders Association (GUTA).

According to GUTA, the imposition of these extra expenses will put a strain on companies and raise the already high cost of conducting business in the nation.

“The Ghana Union of Traders Association (GUTA) strongly opposes the proposed implementation of Value Added Tax (VAT) on electricity charges and the imposition of an emission levy, due to the detrimental economic consequences it will have on businesses operating in Ghana,” the organisation stated in a statement signed by its president, Dr. Joseph Obeng.

As the cost of doing business in the nation is already high, GUTA is adamant that the imposition of these new fees will burden companies.

The absence of infrastructure for electric vehicles will make matters worse, according to GUTA, when the pollution levy is implemented.

It recommended that the government reevaluate these levies and have in-depth discussions with all relevant parties, including the business community.

“GUTA urges the government to reconsider these measures and engage in thorough consultations with key stakeholders, including the business community, before implementing any new taxation policies. It is crucial that the voices and concerns of businesses are heard and taken into account to ensure policies that do not hinder economic growth and investment. GUTA encourages the government to explore alternative means of revenue generation that do not place undue burdens on businesses.”

A new tax policy on carbon dioxide equivalent emissions from internal combustion engine automobiles was established by the government from February 1, 2024.

The Ghana Private Road Transport Union (GPRTU) is among the stakeholders that have protested the government’s action.