Effective 2nd January 2026, MTN Ghana has announced reductions in tariffs across all products and services in line with the country’s recently reformed Value Added Tax (VAT) law under Act 1151. The move comes as part of a broader effort to implement the Ghana Revenue Authority’s (GRA) new VAT framework, which eliminates overlapping levies, removes the cascading tax effect, and simplifies VAT compliance for businesses while easing the cost burden for consumers.
The VAT reforms, hailed as a major overhaul of the previous system, have already begun influencing pricing strategies across the telecom sector and other industries. Companies like MTN are adjusting tariffs to reflect the new structure, signaling early benefits for consumers in terms of lower service costs.
Speaking on the reforms, Dominic Naab, Acting Head of the Strategy and Research Department at GRA, emphasized how the changes will improve transparency and reduce the cost of compliance for businesses.
“If our VAT is implemented well, it should become the most effective tax handle to raise the needed revenue. At the same time, by removing overlapping levies and simplifying the computation, we are creating a fairer system that benefits both businesses and consumers across the country,” he said.
The reforms have brought clarity to VAT registration thresholds. Businesses supplying goods must register for VAT only if their turnover exceeds GH₵750,000 annually, while all service providers are now required to register regardless of revenue. This ensures that VAT administration remains fair and consistent while aligning tax obligations with the consumption-based nature of VAT.
In addition to updating registration rules, the GRA has phased out the flat rate VAT system, requiring all previously registered businesses to operate under the standard VAT framework. Companies must continue charging VAT at the standard rate until the Commissioner General completes the necessary migration or deregistration processes. Businesses are also expected to retain or submit their old VAT flat rate booklets and update their accounting and invoicing systems to align with the new regulations, ensuring full compliance throughout the transition period.
The removal of the COVID-19 health recovery levy, a 1% charge previously added to transactions, is another key aspect of the reforms. Naab confirmed that this levy has been repealed and is no longer part of the VAT equation, providing immediate relief for businesses and consumers.
Following the VAT reforms and the removal of certain levies, companies like MTN have revised their pricing structures. The adjustments, reflected in lower VAT-inclusive tariffs, are expected to ease the cost burden on consumers while also simplifying internal processes, reducing administrative complexity, and streamlining tax accounting.
