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MTN slashes tariffs: First major telco to pass on VAT reform savings to consumers

Telecommunications giant MTN Ghana has announced a comprehensive reduction in tariffs across all its products and services, effective January 2, 2026.

The decision makes MTN one of the first major service providers to formally adjust its pricing structure in response to the government’s wide-ranging Value Added Tax (VAT) reforms.

The tariff cuts were communicated to subscribers via a broadcast message on Friday, January 2, 2026, encouraging customers to visit the official MTN website for a detailed breakdown of the new rates. This adjustment follows a suite of reforms introduced by the Ghana Revenue Authority (GRA) aimed at easing the financial burden on both households and businesses.

The cornerstone of these reforms is the reduction of the standard VAT rate to 20 percent. Additional measures driving the price drop include:

  • Abolition of the COVID-19 Health Recovery Levy: The removal of this pandemic-era consumption tax has eliminated an additional layer of cost for consumers.
  • Levy Re-coupling: The National Health Insurance Levy (NHIL) and Ghana Education Trust Fund (GETFund) levies have been re-coupled, allowing businesses like MTN to claim input tax credits, thereby improving cash flow and reducing effective tax costs.
  • Unified System: The VAT Flat Rate Scheme has been abolished to create a more transparent and equitable tax environment.

This private sector response dovetails with President John Dramani Mahama’s 2026 New Year vision of “acceleration and expansion”

The President highlighted that after a year of “distress” in 2024, the administration has successfully curbed inflation from 23% to a projected single-digit figure just above 5% by the end of 2025.

“In 2026, we shall accelerate and expand,” Mahama declared, calling on the private sector to innovate and build.

Beyond direct consumer savings, the GRA reforms include increasing the VAT registration threshold from GH¢200,000 to GH¢750,000. This change is expected to exempt a larger portion of micro and small enterprises from the compliance burden, potentially stimulating growth in the digital economy.

For the average Ghanaian subscriber, the tariff reduction offers immediate relief.

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