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Economist to government: Bring back road toll

Dr Adu Owusu Sarkodie, a senior lecturer in the Department of Economics at the University of Ghana wants the government to re-introduce the road toll system with immediate effect as part of measures to raise revenue.

Sarkodie believes automating the collection of the tolls and making it more efficient will help generate the needed revenue.“Reverse the removal of road tolls, get the road tolls back on the roads. I agree with the removal of the road tolls in the state in which they were. I have never subscribed to the collection of coins on the roads,” Sarkodie said on The Asaase Breakfast Show on Monday (17 January).

“I have always proposed that we should mechanise, automate the road toll, and the University of Ghana has given us a clear example of that, and if it can be done at Legon, it can be done in every part of the country,” Sarkodie told the host Kwaku Nhyira-Addo.

He added: “Bring the road toll back in a more efficient way to raise the revenue. We cannot be driving free on the roads like that. It must be paid for. So get the road tolls back, mechanise and automate it, reduce the interpersonal collection of coins and all that, make people buy the electronic card, the government has ready cash at the beginning of the year and they can use it to construct the number of roads you want.”

Background

The government abolished all tolls on public roads and bridges in the 2022 Budget Statement.

Ken Ofori-Atta, the Finance Minister said it should come as a relief for road vehicle users given the heavy vehicular traffic, lengthened travel time and ineffective revenue collection at tolling points on our public roads.

Explaining the rationale behind the scraping of the road tolls, the Minister said the revenue that accrues to the state for the construction and maintenance of roads is inadequate and hence, the government has to look elsewhere to equitably generate revenues for the construction and maintenance of our roads.

“Over the years, the tolling points have led to heavy traffic on our roads and lengthened travel time from one place to another, impacting negatively on time and productivity. The congestion generated at the tolling points, besides creating these inconveniences, also leads to pollution in and around those vicinities.

“To address these challenges, the Government has abolished all tolls on public roads and bridges. This takes effect immediately after the Budget is approved. The toll collection personnel will be reassigned. The expected impact on productivity and reduced environmental pollution will more than off-set the revenue forgone by removing the tolls,” he added.

The minister said to compensate for the road tolls, the government is looking to introduce innovative ways of raising revenue such as the proposed 1.7% phone transactions levy payable by mobile money users per transaction above GHS 100. He said this will help government to shore up revenue inflows to fund road projects in the country.

This takes effect immediately the Budget is approved. The toll collection personnel will be reassigned. The expected impact on productivity and reduced environmental pollution will more than offset the revenue forgone by removing the tolls.

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