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General News of Wednesday, 10 January 2024

Source: www.ghanaweb.com

Exclude commercial tricycles and okada from emission levy - Group tells government

ORAG is calling on the government to exempt okada and tricycle riders from the emission levy ORAG is calling on the government to exempt okada and tricycle riders from the emission levy

An association calling itself, Okada Riders Association (ORAG), has appealed to the government to exempt commercial tricycles and motorcycles from yet to be passed Emission Levy Bill.

According to the group, such a levy would disproportionately burden the already struggling commercial tricycles and motorcycle industry, citing the recent surge in prices for spare parts and engine oil.

The Emission Levy Bill, which is before parliament for consideration, if passed, will impose an annual charge of GH¢100 on all users of petrol and diesel automobile machines.

In a statement released by the association, they emphasised the adverse economic impact of the proposed levy on their members.

The group urged the government to recognize the unique challenges faced by commercial tricycle and okada riders, considering the escalating costs of essential components for their vehicles.

“Given the country’s current economic position where commercial tricycles and okada spare parts and engine oil are on the hike, the association demands from the government with immediate effect their exclusion from the emission levy bill considering the many taxes under whose full weight they are already labouring,” part of the statement read.

ORAG pointed out the apparent inconsistency in taxing diverse vehicles, including high-end V8 vehicles, articulator long vehicles, ambulances, and commercial automobiles, all at the same rate of GH¢100 per annum.

The association argued that such a uniform tax fails to consider the significant differences in the purchase prices of these vehicles and their respective economic benefits to owners.

“It defies economic logic, how v8 vehicles, articulator long vehicles, ambulances and commercial automobiles of which motorbikes okada, tricycles will be lumped up to pay an equal amount of GH¢100 per annum considering the sharp differences in the price of purchasing these varying vehicles and their various economic benefits to their owners,” the statement added.

The bill, if passed, the group added, “will have an indirect impact on particularly okada riders who have no income cushioning from the government and are therefore overburdened with other existing nuisance takes.”

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