Multichoice Clears Air On DSTV/GOTV Rates Increase Controversy

Multichoice Nigeria has spoken on raging controversy engendered by its imminent subscription rate increase.

It would be recalled 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%.

Multichoice had said it would, from June 1, adjust subscription rates to reflect the 50% increase in value-added tax.

Consequently, Nigerians, especially on social media, have since registered their dissatisfaction with the adjusted subscription rates for DSTV and GoTV.

In various reactions on Twitter, subscribers had said, owing to economic uncertainty and financial strait faced by many due to the COVID-19 pandemic, the time was not appropriate for such move.

But John Ugbe, chief executive officer of Multichoice, said the company did not increase subscription rates.

Ugbe said the price review announced to customers became imperative in light of increase in VAT, adding that the tariff review was a reflection of the VAT increase.

Ugbe made the clarification in an interview with TheCable.

He said the company dillydallied on implementing the VAT because it felt it could absorb the cost for some time.

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He reiterated that the company was not increasing prices but only implementing the 2.5 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.