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 takes effect from June 1, is to reflect the increase in the rate of the Value Added Tax by 2.5 per cent from 5 per cent to 7.5 per cent by the Federal Government.
The 2.5 per cent increase followed the signing of the Finance Act 2019 on January 13, 2020 by President Muhammadu Buhari.
The new VAT rate, which took effect from February 1, 2020, is one of the measures adopted by the Federal Government to increase revenue from non-oil sources.
In a statement issued in Lagos, MultiChoice said it did not start implementing the new VAT rate on February 1 in order to provide relief for its customers, meaning it absorbed the 2.5 per cent hike by making its products and services available at the old rate of 5 per cent.
“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 said
The company announced that the adjustment would see DSTV premium subscription rate move from N15,800 to N16,200, while GOtv Max price will rise to N3,280 from N3,200.