MTN slashes tariffs of products and services over revised VAT framework

*MTN Ghana announces reductions across all product and service tariffs in accordance with the Ghana Revenue Authority’s far-reaching Value-Added Tax review to ease the burden of cost pressures on consumers, households and businesses while improving compliance in the telecoms ecosystem

Alexander Davis | ConsumerConnect

In line with recent adjustments under the new Value-Added Tax (VAT) framework in the West African country, MTN Ghana has announced reductions in tariffs across all its products and services, effective from Friday, January 2, 2026.

The telecoms giant, which disclosed this development in a message to customers Friday, said the tariff reductions are sequel to the Ghanaian Government’s latest adjustments in VAT regulation.

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MTN encouraged its millions of customers to visit the company’s official Web site for further details.

ConsumerConnect gathered that the move has positioned MTN Ghana as one of the first major telecoms service providers to reflect the tax changes in its pricing structure in the country’s ecosystem.

The MTN tariff cuts are said to have come on the backdrop of comprehensive VAT reforms.

Core objectives of revised VAT framework

It was learnt the Ghana Revenue Authority (GRA) had introduced the review   as part of efforts at easing the tax burden on consumers, households and businesses while improving compliance in the telecoms space.

One of the major changes under the new Act is the upward revision of the VAT registration threshold for businesses dealing in goods, which has been increased from GH¢200,000 to GH¢750,000, agency report said.

It is also noted that the adjustment is meant to significantly reduce the compliance burden on micro and small enterprises by exempting a larger number of businesses from mandatory VAT registration in the economy.

Aside from the VAT review, the Ghana Revenue Authority announced the abolition of the COVID-19 Health Recovery Levy.

This tax regulatory measure has removed an additional layer of consumption tax that had been in place since the pandemic, report noted.

Besides, the re-coupling of the country’s National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) levies would allow businesses to claim input tax credits.

The step, report indicated, is expected to improve cash flow and reduce the effective tax cost for VAT-registered firms in Ghana.

GRA abolishes VAT Flat Rate Scheme

The GRA, under the revised framework, said the standard VAT rate had been reduced to 20 percent, with the Authority noting that the measure is aimed at easing cost pressures on consumers and businesses.

The VAT Flat Rate Scheme has also been abolished, paving the way for a more unified and transparent VAT system.

The Ghana Revenue Authority explained the string of reforms is designed to promote equity in the tax system, enhance administrative efficiency, and strengthen overall tax compliance.

MTN’s tariff reductions are equally expected to offer some relief to telecoms subscribers at a time when consumers are closely watching how businesses respond to the new VAT regime, particularly in key sectors, including telecommunications.

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