A subscribers’ group under the aegis of Association of Telephone, Cable TV and Internet Subscribers (ATCIS), has asked MultiChoice, operators of DStv and GOtv to drop its proposed new tariff based on the new Value Added Tax of 7.5 per cent.
In a letter to MultiChoice, the group expressed their displeasure at the plan to increase monthly DStv/GOtv tariff in Nigeria starting from June 1.
The group’s national president, Adesina Bilesanmi and national secretary, Mrs Loris Anger, in a letter, said “We write on behalf of Board of Trustees, Elders Forum, Executives and entire members with over 185 million subscribers drawn from the six geopolitical zones.
“The above-named association, wish to notify you that, we say no to increase in monthly tariff DStv/GOtv subscription in Nigeria during COVID-19. We are the masses advocate and fight for positive change for the interest of the subscribers.”
The association said it was inaccurate to introduce a new tariff based on the new Value Added Tax of 7.5 per cent.
According to the group, five per cent VAT has already been included in the previous tariff plan and the tariff increment should only be based on the additional 2.5 per cent.
But MultiChoice had in a reaction, dismissed reports that it is set to increase subscription rates for its DStv and GOtv packages from June 1.
The company said the price adjustments it recently announced, which take effect from June 1, is to reflect the increase in the rate of the Value Added Tax (VAT) by 2.5 per cent from five (5) per cent to 7.5 per cent by the Federal Government.
MultiChoice said the 2.5 per cent increase followed the signing of the Finance Act 2019 on January 13 by President Muhammadu Buhari.
The new VAT rate, which took effect from February 1, is one of the measures adopted by the Federal Government to increase revenue from non-oil sources.
“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. DStv and GOtv products and services will be amended to include 7.5 per cent VAT,” the statement said.
MultiChoice 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.