DStv Reveals Why They Had To Increase Subscriptions

MultiChoice Zimbabwe has said the latest hike of subscriptions for all DStv bouquets were necessitated by Value-Added-Tax (VAT) adjustment.

In a statement, the Pay-TV service said since January 1, 2020, DStv subscriptions are subject to VAT in terms of Finance Act 3 of 2019. The statement read in part:

With the introduction of VAT on externally sourced pay-TV services by the Zimbabwean government from January 1 this year, DStv subscriptions are subject to VAT in terms of Finance Act 3 of 2019.

Although the introduction of VAT became effective on 1 January 2020, this was absorbed by MultiChoice for the first five months of the year.

The business will start charging VAT on its services from 1 June 2020, so it may continue injecting this much-needed revenue into the local economy.

… in order to remain sustainable as a business, the price adjustments are necessary to ensure we continue to deliver the best local and international content, innovative technology and excellent service to Zimbabwean DStv viewers.

The result of the mandatory tax and marginal price adjustment is an increase to subscribers in the monthly cost of all DStv bouquets, as well as for add-on services such as DStv Indian and DStv Portuguese and also for DStv packages for corporates and the hospitality industry.

The new prices will into effect on the first of June. The DStv Lite package will increase from US$7 to US$8 while the Access package will increase from US$11 to US$13.

The Family package will increase from US$17 to US$19, Compact package from US$25 to US$29, Compact Plus from US$40 to US$45, Premium from US$65 to US$75, HD PVR Premium from US$76 to US$88, XtraView access fee from US$11 to US$13 and Indian package from US$32 to US$37.

More: Financial Gazette

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