By Benjamin Nii Nai Anyetei
Telecommunications giant MTN Ghana has announced a comprehensive reduction in tariffs across all its products and services, effective January 2, 2026, making it one of the first major telecom operators to pass on savings from recent Value Added Tax (VAT) reforms directly to consumers.
The tariff reductions were communicated to subscribers through a broadcast message on Friday, January 2, with customers encouraged to visit MTN’s official website for a detailed breakdown of the new pricing structure.
According to MTN, the decision follows wide-ranging VAT reforms introduced by the Ghana Revenue Authority (GRA), aimed at easing the financial burden on households and businesses while improving efficiency within the tax system.
A key component of the reforms is the reduction of the standard VAT rate to 20 percent. Additional measures contributing to the lower cost of services include the abolition of the COVID-19 Health Recovery Levy, which had added an extra layer of consumption tax during the pandemic period.
The reforms also re-coupled the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) levies, allowing businesses to claim input tax credits. This change is expected to improve cash flow for companies like MTN and reduce their effective tax costs. In addition, the VAT Flat Rate Scheme has been abolished in a move intended to create a more transparent and equitable tax environment.
MTN’s price adjustment aligns with President John Dramani Mahama’s 2026 New Year vision of “acceleration and expansion,” which calls on the private sector to innovate and drive economic growth.
The President has indicated that after a year of economic distress in 2024, his administration has managed to curb inflation from 23 percent to a projected single-digit level of just above 5 percent by the end of 2025.
“In 2026, we shall accelerate and expand,” President Mahama said, urging businesses to build confidence and invest.
Beyond immediate consumer savings, the GRA reforms also include raising the VAT registration threshold from GH¢200,000 to GH¢750,000. This adjustment is expected to exempt a larger number of micro and small enterprises from VAT compliance, potentially stimulating growth, particularly within the digital economy.
For the average Ghanaian subscriber, MTN’s tariff reduction is expected to translate into lower call, data and service costs, offering some financial relief as the new year begins.
