Business

Multichoice Stands By Decision On Implementing New VAT Rate

Published

4 years ago

2020/05/16

Multichoice Nigeria says its new price rates are to reflect the increased 2.5% value-added tax (VAT) of and not an increase in its subscription rates.

The 2020 finance act, which was signed into law in January, raised VAT from 5% to 7.5%, to increase the government’s non-oil revenue.

The VAT increase was implemented on February 1.

In a statement reported by The Cable, on Saturday, the company explained that the price adjustments it recently announced, which will take effect from June 1, are to reflect the increase in the rate of which was implemented by the federal government in February.

The company added that it did not start the implementation of the new VAT rate the time it took effect in order to provide relief for its customers.

It said this means 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,” it said.

“DStv and GOtv products and services will be amended to include 7.5% VAT.”

The company said 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.

Some Nigerians have complained about the timing of the implementation, arguing that it would affect a lot of people who are struggling financially due to the COVID-19 crisis but the company said the new VAT rate has to be implemented with effect from June 1.