Nigeria’s government raised the level of VAT on goods and services to 7.5 per cent back in February from 5 per cent.
Initially pay-TV broadcaster DStv/Multichoice absorbed 2.5 per cent of the tax itself and kept subscription prices at the pre-increase level. That is now changing.
Multichoice has told subscribers that it cannot continue to absorb the tax.
Local reports say that the broadcaster was also seeking exemption of the tax increase but Nigeria’s Federal Government has recently insisted that the tax will stay in place.