Private commercial transport operators accuse gov’t of sector exploitation to access Climate Change Funds, express concerns over electric vehicle tax waiver policy

By: Jude Tackie

In a joint press release issued on Wednesday, the Ghana Committed Drivers Association and the True Drivers Union raised their collective voice against the recent tax waiver policy announced by the Finance Minister, Ken Ofori-Atta, as part of the Budget and Economy Policy for 2024.

The Finance Minister’s proposal includes an 8-year Tax Waiver Moratorium for the importation of Electric Vehicles (EVs) for public transportation, a move intended to promote the adoption of green technologies and access climate change funds.

Expressing disappointment and concern, the statement jointly signed by Charles Danso (Chairman, Ghana Committed Drivers Association) and Yaw Barima (PRO, True Drivers Union), stated, “We feel deceived and conned by the government. This policy seems to be a key strategy to facilitate the penetration of electric vehicles into our public transport system, ultimately putting our fragile transport business at risk.”

The private commercial transport operators fear that the introduction of EVs will lead to increased competition, potentially causing the collapse of their businesses due to what they perceive as unfavourable economic policies of the government.

A notable point of contention raised by the associations is that the tax waiver not only applies to brand-new EVs but also includes damaged EVs. This, they argue, opens the door for the importation of substandard vehicles, contrary to the government’s tightened policies on damaged vehicle imports.

“We attended a consultative meeting on the Draft National Electric Vehichle Policy Stakeholder Consultation in July 2023, where we were informed that the implementation of the policy would commence in 2035. The sudden shift to 2024 raises questions and adds to our sense of feeling deceived,” the statement read.

The associations also raised concerns about the lack of adequate infrastructure, such as charging points, and the reliability of electricity supply for EVs. They emphasized that the government’s rush to implement the policy without addressing these issues could further strain the country’s electricity supply.

In their joint statement, the private commercial transport operators called on the government to reconsider the timeline for the implementation of the policy, urging a more gradual approach that considers the concerns of all stakeholders. The associations emphasized the need for infrastructure development and a comprehensive strategy to ensure the sustainability of their businesses in the face of evolving transportation policies.