Pay Television Company, MultiChoice Nigeria, has dismissed reports that it is set to increase subscription rates for its DStv and GOtv packages from June 1. The company explained that the price adjustments it recently announced, which take effect from June 1, are to reflect the increase in the rate of the Value Added Tax (VAT) by 2.5 percent from five percent to 7.5 percent by the Federal Government.
“The 2.5 per cent increase followed the signing of the Finance Act 2019 on January 13 by President Muhammadu Buhari. The new VAT rate, which took effect from February 1, is one of the measures adopted by the Federal Government to increase revenue from non-oil sources”, the company said in a statement.
In the statement, MultiChoice said it did not start implementing the new VAT rate on 1 February in order to provide relief for its customers, meaning that it absorbed the 2.5 percent hike by making its products and services available at the old rate of five percent. “We acknowledge that Nigerians are living under increased economic pressure and want to make every naira they spend count. We remain committed to providing our customers with value for their naira while giving them access to the best available content. DStv and GOtv products and services will be amended to include 7.5% VAT,” the statement reads. The adjustments will see the rate for the DStv premium bouquet move from N15, 800 to N16, 200, while that of GOtv Max will rise to N3, 280 from N3,200.