which came into effect on February 1, raised the rate of VAT from five percent to
7.5 percent on goods and services.
provider MultiChoice Nigeria said it will start enforcing the new Value Added
Tax, VAT, rate, which could lead to a hike in its DStv and GOtv packages rates.
into effect four months ago, MultiChoice has absorbed the 2.5 percent hike on
behalf of its subscribers, an action that has kept that VAT rate at the
pre-February rate of five percent.
information gathered, there is no way the pay television giants can continue to
pay the difference between the old and the new rates for much longer, as this
has impacted very negatively on its finances.
said: “Pay TV service is not excluded from VAT and I would like to think
that MultiChoice is the only business that still charges the old rate of VAT on
its goods and services. It is important to note that VAT is not part of
corporations’ turnover, which they simply receive on behalf of the Federal
Government and remit on a given date.
added that MultiChoice may have waited for four months to effect the new rate,
in the hope that, as widely speculated, the Federal Government might revert to
the old rate before the end of the first quarter of the year.
speculations that the Federal Government would return to the old rate, but
recent pronouncements by government officials that there would be no return to
the old rate may have forced the company into a decision despite the best of
reaching us is that the pay-television company is also planning to phase out
some of its legacy packages on DStv and GOtv platforms and replace them with
new ones to create capacity for new content additions and give them distinct