12.5% VAT to blame for mobile data price increment – MTN

Telecommunications company, MTN is attributing the increase in the price of mobile data and other services to the implementation of the 2.5% statutory adjustment of VAT from 12.5% to 15% across all services.

“Mobile data prices are expected to increase on the average  by 15%  from  February 7, 2023”, the company said in press statement.

Services to be impacted

The increase in the data prices should have been implemented in November 2022, but was put on hold.

According to the company, the increase in prices will affect both Pay Monthly and Pay-As-You-Go users.

The review in mobile data bundle offers cover products available on the shortcodes 138 & 170, as well as on purchases through Electronic Voucher Distribution (EVD), MTN Pulse, and Data Zone except for XtraTime. 

“The data increase does not apply to Fiber Broadband and Fixed Wireless Access (4G Router / Turbonet) customers”.

 The company explained that other product offering will also be affected by the adjustments, in terms of the tariff review.

How will subscribers be affected?

MTN stated that with the review, voice users will receive less airtime due to the VAT implementation, and mobile data customers will receive less in data bundle allocations for the same price purchased before the tariff increase was made.

The Chief Commercial Officer for MTN, Noel Kojo-Ganson, explained that the new pricing will be implemented transparently.

“A three cedis airtime purchase before the VAT increase, which previously gave customers 24.4 minutes will now be 23.9 minutes, whilst a three cedis data bundle which previously gave customers 471 MBs will now give customers 401 MBs.

MTN justifies increase

Explaining the reason for the upward review of the Data Bundle prices, Mr. Kojo-Ganson said the review was necessitated by the recent economic shifts, leading to increase in cost of operations.

“These economic shifts have impacted us directly and for us to ensure we have the right balance for sustaining growth and investments into the network; we have had to consider price increases in various segments of our business.” 

 “MTN recognises that we are in very tough times and would like to assure our customers that we will continue to offer them the convenience and flexibility in the purchase of data bundles at their desired price points via the MTN Flexi and Non-Expiry Bundles. Also, customers will continue to enjoy the 50% bonus incentive on mobile data purchases via MyMTN App & MoMo (valid for 7 days) for 4G customer”, he added.