Multichoice Nigeria has debunked reports that it is planning to increase subscription rates for its DStv and GOtv packages from June 1.
According to the South African-owned outfit, the price adjustments it recently announced, which take effect from June 1, is to reflect the increase in the rate of the Value Added Tax, VAT, by the Federal Government from five (5) per cent to 7.5 per cent; an increase of 2.5 per cent.
Multichoice also stated that 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, according to the outfit, is one of the measures adopted by the Federal Government to increase revenue from non-oil sources.
The company, in a statement issued in Lagos, said it commence the implementation of the new VAT rate on June 1 in order to provide relief for its customers, saying that it absorbed the 2.5 per cent hike by making its products and services available at the old rate of five (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 percent VAT,” the statement said.
According to MutichoiceMultichoice said 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.
Earlier, the news about the planned increase of subscription rates by Multichoice had caused many of their Nigerian subscribers to raise eyebrows about the idea especially as the country’s economy is no longer smiling at the citizens since the outbreak of the novel Coronavirus which has crippled many economies of the world while also claiming lives.