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Bawumia Calls for Overhaul of Tolling System to Ensure Equitable Distribution

Story Highlights
  • Vice President Bawumia advocates for a broad-based tolling system to ensure fairness.
  • He criticizes the previous tolling system for excluding wealthier areas.
  • Bawumia proposes a fuel tax to generate significant revenue for the state.
  • The government plans to reintroduce road tolls in 2025 after the e-levy's failure.

Vice President Dr. Mahamudu Bawumia has emphasized the need for a broad-based tolling system in Ghana to ensure everyone contributes to the system if it is reintroduced. Speaking at a High-Level discussion on Roads in Accra, Dr. Bawumia highlighted the inequity in the previous tolling system, where only certain areas had toll booths.

He noted that the current architecture of tolling excludes wealthier parts of the population, citing his own experience living in Cantonments, East Legon, and Ridge, where he doesn’t encounter toll booths. Dr. Bawumia argued that broad-based tolling would ensure everyone contributes, regardless of their location or income level.

He suggested implementing a tax on fuel, such as 30 pesewas, which would generate revenue only when individuals use the roads. According to Dr. Bawumia, if everyone paid, the state could generate GHS2 billion per annum, compared to the GHS70 million collected yearly before the tolls were abolished.

The government is planning to reintroduce road tolls in 2025, after canceling them in 2021 and replacing them with the e-levy, which has failed to meet expectations. Finance Minister Dr. Mohammed Amin Adam disclosed that Cabinet has approved a framework to facilitate the reintroduction of tolls.

Dr. Bawumia’s proposal for broad-based tolling aims to address the inequity in the previous system and ensure a more comprehensive revenue generation model. The reintroduction of tolls is expected to provide a significant boost to the country’s revenue, which can be used to improve road infrastructure and other public services.

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