Vice President Dr Mahamudu Bawumia has promised to reduce the cost of transportation between 30 to 40% if given the nod as President.
He made the remarks while unveiling his plans for the country if elected president of Ghana at the University of Professional Studies, Accra (UPSA). Among other things, the Vice President pledged to introduce electric vehicles (EVs) in Ghana’s transportation sector, aiming to significantly reduce the cost of public transportation if his administration is elected in the 2024 elections. Speaking at a public lecture on February 7, 2024, where he presented his vision as the flagbearer of the New Patriotic Party (NPP), Bawumia emphasized the potential of EVs to cut down transportation costs by 30-40%.
Explaining the rationale behind the initiative, Bawumia highlighted the dominance of fuel prices and spare parts costs in the public transport pricing formula. He emphasized that EVs, which do not rely on petrol or diesel and have minimal spare parts requirements, would lead to stable transport fares and eliminate the frequent and significant fare increases experienced in traditional vehicles.
“The public transport pricing formula is dominated by two key variables; the price of fuel and the price of spare parts. Electric vehicles do not use petrol or diesel and spare parts are minimal. That is what will bring down the fares for EVs. More importantly, transport fares for EVs will be stable and the constant and large increases in fares will become a thing of the past,” he said.
In addition to the adoption of EVs, Bawumia pledged to abolish taxes on electronic transactions, gambling, and emissions if elected president. The government had introduced various taxes, including a 10% gambling tax on all winnings, a 15% Value-Added Tax (VAT) on electricity slated for implementation in January 2024, and an emissions levy for engine vehicles starting from February 2024.
Bawumia’s announcement signals a commitment to leveraging innovative solutions to address pressing economic and environmental challenges in Ghana. The introduction of EVs not only aims to reduce transportation costs but also aligns with efforts to promote sustainability and reduce carbon emissions in the transportation sector.
As the country approaches the general elections, Bawumia’s proposed policies are expected to feature prominently in the political discourse, shaping public opinion and influencing voter decisions.