MTN-Ghana has announced a 5% tariff adjustment effective, Friday, November 02, 2018.

The upward review will affect SMS, Voice and IDD tariffs. This was contained in an alert broadcast to subscribers last night.

The members of the Chamber of Telecommunication Companies (CTC) weeks ago announced their intention to review their tariffs, starting November 1, 2018, to reflect the new tax regime in the country.

The members are AirtelTigo, MTN and Vodafone, which together control more than 90 per cent of the voice and data market in the country.

Levies

After the presentation of the 2018 mid-year review of the budget by the government, Parliament amended the acts to give effect to the conversion of the National Health Insurance Levy (NHIL) and the GETFund Levy into levies that are not subject to the input-output mechanism, and delinking them from the Value Added Tax (VAT) by removing the option of input tax deductibility, thereby giving both levies a unique and different legal identity and distinguished from VAT.

Telecommunication companies

A statement signed by the Chief Executive Officer of the CTC, Mr Kenneth Ashigbey, and issued on Wednesday October 17, 2018 said the chamber “wishes to notify its esteemed customers and the general public of tariff modifications following the implementation of the new tax laws”.

“The government, as part of the 2018 mid-year review of the budget, amended the acts referenced above. The objective was to give effect to the conversion of NHIL and GETFL into levies that are not subject to the input-output mechanism and delinking them from VAT by removing the option of input tax deductibility, thereby giving both levies a unique and different legal identity and distinguished from VAT,” it said.

“Our members, who are responsible corporate entities, will comply fully with Ghana’s laws and ensure the distinction between VAT and the new levies emanating from their separate origins and basis in law.

“As intended, the incidence of the two new levies will thus be on consumers and will result in the increase of the cost of telecommunication services.

“Customers of telecommunication services will be notified by their service providers prior to any changes being made and the expected changes will take effect from November 1, 2018.

“The telecommunications industry remains committed to full transparency and accountability to both the government of Ghana and their customers,” it added.