Multichoice Nigeria says it will, from June 1, adjust subscription rates to reflect the 50% increase in value-added tax.
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%.
Nigerians had taken to social media on Thursday to express displeasure at the adjusted subscription rates for DSTV and GoTV.
In various posts on Twitter, subscribers had said the time was not right for a tarriff review.
Speaking with TheCable on Friday, John Ugbe, chief executive officer of Multichoice, said the company did not increase subscription rates.
Ugbe said the price review announced to customers is an adjustment to reflect the increase in VAT.
“We are not increasing prices,” he told TheCable.
“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.
Source: The Cable
