Multichoice slams criticism over increment in subscription, reveals price change due to VAT surge

Multichoice Nigeria has refuted criticism over its change in subscription price; adding that the increment is due to an increase in value-added tax from 5% to 7.5%.

The 2020 finance act, which was signed into law in January and implementation began in February; raised VAT to ramp up the government’s non-oil revenue.

This price change by Multichoice prompted an outpour of criticisms from Nigerians on social media; who expressed displeasure at the adjusted subscription rates for DSTV and GoTV.

However, a statement issued on Monday, May 11; by the chief executive officer of Multichoice; John Ugbe, explained that 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 stated.

“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 the DSTV premium subscription rate move from N15,800 to N16,200; while GoTV Max price would move from N3,200 to N3,280.

Meanwhile, Google has extended its work-from-home policy for the remainder of 2020.

After previously telling employees that they would be working remotely until June 1st, CEO Sundar Pichai has told employees that they’ll likely work from home until the end of the year, via The Information.

According to Pichai, employees whose work requires physically being in the office will be allowed back in either June or July; but with increased safety precautions and a “different” in-office experience.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button