As of January 2, 2026, MTN Ghana will lower prices for all of its goods and services. The telecommunications giant announced the tariff reductions in a letter to clients on Friday, advising them to visit its official website for more information and stating that they were in line with changes made under the new VAT framework.
With this action, MTN becomes one of the first big service providers to incorporate the tax adjustments into its pricing model. The Ghana Revenue Authority (GRA) implemented significant VAT changes in an effort to lessen the tax burden on households and businesses while also increasing compliance, which led to the tariff reductions.
The VAT registration threshold for businesses trading in goods has been raised from GH¢200,000 to GH¢750,000 under the new Act, which is one of the significant reforms. By exempting a greater number of businesses from compulsory VAT registration, this change should lessen the compliance burden on very small and small businesses.
The COVID-19 Health Recovery Levy, which had been in place since the pandemic and added another layer of consumption tax, has also been abolished by the GRA. Additionally, re-linking the levies for the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) will enable companies to claim input tax credits, which is anticipated to lower the real tax burden for businesses registered for VAT and boost cash flow.
With the goal of reducing cost pressures on consumers and businesses, the Authority has lowered the usual VAT rate to 20 per cent under the updated regime. The VAT Flat Rate Scheme has also been abolished, paving the way for a more unified and transparent VAT system. The GRA states that the package of changes aims to increase equity in the tax system, improve administrative efficiency, and boost tax compliance generally.
At a time when customers are paying close attention to how companies react to the new VAT system, notably in crucial industries like telecommunications, MTN’s tariff reduction is anticipated to give some respite to subscribers.
