Multichoice to increase subscription rates for GOtv, DStv

From June 1, Multichoice Nigeria says it will adjust subscription rates for both its GOtv and DStv subscribers to reflect the 50% increase in value-added tax.

Recall that the 2020 finance act, which was signed into law in January and implementation began in February, raised VAT by 50% from 5% to 7.5%.

Speaking on the adjustment, Managing Director of Multichoice Nigeria, John Ugbe, said the company did not increase subscription rates, but rather to reflect the new increment in VAT in Nigeria

“What has happened is that the federal government’s finance act was signed in January and implementation began in February so the 50% increase in VAT is what we are implementing now.”

Speaking on the delayed implementation of the VAT increase when other companies’ adjusted rates immediately, Ugbe said: “We thought we could absorb the cost for a while and that was what we did.

“We’ve absorbed the cost since February and we have been paying the difference in taxes and we can no longer do so.

“So once again, we are not hiking prices, it’s only the 2.5% increase in VAT that we are implementing.”

The company announced that the adjustment would see DSTV premium subscription rate move from N15,800 to N16,200 while GoTV Max price would move from N3,200 to N3,280.