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%.
Credit: thenationonlineng.net
