Parliament has officially repealed the controversial Emissions Levy following public outcry and concerns from businesses over its potential economic impact.
The levy, introduced by the erstwhile Akufo-Addo government in 2023 but taking effect in February 2024, was intended to tax carbon emissions from fuel usage.
However, it faced strong opposition from industry players and citizens, who argued that it would increase the cost of living and place an additional burden on businesses.
On March 26, 2025, lawmakers voted to scrap the levy, citing the need for a more balanced approach to environmental sustainability and economic growth.
The bill is now awaiting presidential assent.
Meanwhile, parliamentary leaders emphasised their commitment to exploring alternative policies that promote green initiatives without imposing excessive financial strain on businesses and consumers.
Background
In 2023, Ghana’s Parliament introduced the Emissions Levy Act, 2023 (Act 1112).
The Act was passed as part of the tax measures outlined in the government’s 2024 Budget Statement and Economic Policy (the 2024 Budget).
Its objective was to generate revenue to support various sector reforms while promoting a green economy.
Source: www.ghanaweb.com
