John Awuni, Preseident of FABAG
John Awuni, Preseident of FABAG

Emissions levy premature and anti-business - Food and Beverage Association 

The Food and Beverage Association of Ghana (FABAG) has added its voice to the call for the Emissions Levy Act, 2023 (Act 1112) to be aborted. 

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The levy is on carbon dioxide equivalent emissions on internal combustion engine vehicles. 

Related article: Emissions Levy kicks in February 1; See how much tax you will pay on your car 

In a press statement, John Awuni, the President of the Food and Beverage Association of Ghana (FABAG) described the tax as a premature, ineffective and anti-business move that would only worsen the suffering of ordinary Ghanaians and industry. 

“Aside from taxing motor bikes and vehicles of various categories, the tax also seeks to measure carbon of industries and charge them appropriately. We find this tax especially the aspect that affects industry in the country as highly insensitive and totally anti-business,” it said. 

“Considering the struggles of Ghanaian industries and businesses post Covid 19 vis-a-vis the massive new taxes introduced by the government since its assumption of power, the government should never have thought of adding another layer of tax to industry at this point in time,” it lamented. 

John Awuni - President of FABAG

It also stressed that even though the tax sounds nice in theory, its introduction in Ghana was premature and could not achieve its desired objectives.

“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 is paid to the government? How can carbons emitted by an industry be measured accurately to ensure that neither the government nor the industrial player is cheated?” the statement queried. 

Therefore, the tax, it said, does not stand any chance of changing the behavior of carbon emissions among industrial players in because they were  not going to suddenly change to environmentally friendly practices by buying new manufacturing equipment or generally jettison their old equipment for modern ones.

Rather, FABAG believes that its introduction will simply raise the cost of production, create avenue for corruption and disturb the already acidic business environment and make a few people rich at the expense of the consumer and the entire Republic.

“As already indicated by the power providers in the country, the tax will cause them to increase electricity tariffs to industry and the ordinary Ghanaian who is already reeling under serious financial pressures will gravely suffer. when this happens, the corruption situation will even get worse as people will have to find innovative ways of surviving,” it stressed. 

The association ultimately appealed to the government to the government to halt the introduction and implementation of any new tax in the interest of the business community, the common man and the country in general.

It also encouraged the government to fill in the financial gap that will be created in its budget by ensuring serious expenditure cuts, reduction of waste and value for money projects.

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