Government appears to be having some challenges in  implementing the ad-valerom tax on  petroleum products.

According to the Ghana Revenue Authority (GRA) the National Petroleum Authority (NPA) should have  introduced the tax from January 8, 2014 but has not done so.

 After four reviews in prices  of petroleum products for this year,  the NPA is yet to introduce the  tax.

 Sources say government is currently  at a fix about the appropriate time to  introduce that tax,  because the current economic difficulties in the country.

The sources say government fears Ghanaians may not support any huge increases in prices of petroleum products. 

 Implementation of the ad-valerom would have seen prices petroleum products during the recent adjustments go  up by almost  12 or 15 per cent instead of the  little over  six percent hike recorded.

The tax  is expected to gross a little over  GH¢200 million for state.

Analysts say considering the current challenges that government is facing it might be  prudent to go ahead with the implementation of the tax to boost revenue generation.

Government last year secured parliamentary approval to  change some of the taxes on petroleum products.

This resulted in the introduction of the Ad-Valerom tax which would see almost 1 to 6 per cent of tax put all petroleum products.

 But communication consultant for the Energy Ministry, Edward  Bawa,  says government is not hesitant in implementing the tax, rather it wants to carry out the necessary education before introducing the 1 to 6 per cent petroleum tax.