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, 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 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.
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 that it absorbed the 2.5% hike by making its products and services available at the old rate of 5%.
The statement: “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.”