Pay television company, Multichoice Nigeria, has dismissed reports that it is set to increase subscription rates for its DStv and GOtv packages from 1 June.

The company explained that the price adjustments it recently announced, which take effect from 1 June, is to reflect the increase in the rate of the Value Added Tax (VAT) by 2.5 % from 5% to 7.5% by the Federal Government.

The 2.5 % increase followed the signing of the Finance Act 2019 on 13 January by President Muhammadu Buhari. The new VAT rate, which took effect from 1 February, 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 1 February in order to provide relief for its customers, meaning that it absorbed the 2.5% hike by making its products and services available at the old rate of 5%.

“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.

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