MTN Cuts Tariffs as Ghana’s VAT Reforms Begin to Ease Consumer Costs

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MTN has moved swiftly to reflect Ghana’s new tax direction, becoming one of the first major service providers to formally reduce prices following the government’s overhaul of the Value Added Tax (VAT) system.

 

Subscribers were informed of the revised tariffs via a broadcast message sent on Friday, January 2, 2026, with the telecoms operator directing customers to its official website for full details of the new pricing structure. The adjustment is directly linked to recent reforms by the Ghana Revenue Authority (GRA), designed to lower costs for households while improving the operating environment for businesses.

 

At the heart of the reform package is a reduction of the standard VAT rate to 20 percent. The price relief is further reinforced by the scrapping of the COVID-19 Health Recovery Levy, a pandemic-era tax that had added to consumer expenses. In addition, the re-coupling of the National Health Insurance Levy and the GETFund levy now allows companies like MTN to claim input tax credits, easing cash flow pressures and lowering their effective tax burden. The abolition of the VAT Flat Rate Scheme has also simplified the system, creating a more transparent and predictable tax framework.

 

The move by MTN aligns with President John Dramani Mahama’s 2026 New Year message, in which he outlined a vision of “acceleration and expansion” for the economy. Reflecting on the economic strain of 2024, the President noted that inflation has been brought down from 23 percent to a projected level slightly above 5 percent by the end of 2025, setting the stage for renewed private sector confidence.

 

Beyond the immediate impact on consumer prices, the reforms also raise the VAT registration threshold from GH¢200,000 to GH¢750,000. This change is expected to relieve many micro and small enterprises of compliance obligations, potentially unlocking growth across sectors such as digital services and small-scale commerce.

 

For millions of MTN subscribers, the tariff reduction translates into direct savings and a tangible sign that fiscal reforms are beginning to filter through to everyday costs. More broadly, it signals how tax policy changes, when effectively implemented, can quickly influence private sector behaviour and deliver visible benefits to citizens.


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