MultiChoice to absorb VAT hike as subscriptions remain unchanged

Mbulelo Mpofu, Zimpapers Arts and Entertainment Hub

EARLIER this month, the treasury decided to raise the Value Added Tax (VAT) rate by 0,5 percentage points, sparking concerns about potential price increases for goods and services. However, pay-television giant MultiChoice Zimbabwe has swiftly moved to assure its subscribers that their DStv fees will remain unaffected by the tax adjustment.

In a formal communiqué addressing the change, MultiChoice Zimbabwe stated: “MultiChoice confirms the announced VAT changes in Zimbabwe, increasing from 15,0% to 15,5%, effective 1 January 2026. We remain committed to full compliance with local regulations and have prepared our systems and customer communication to ensure a smooth transition. Importantly, MultiChoice will not be increasing subscription prices as a result of this VAT adjustment. Our priority is to minimise the impact on customers while maintaining uninterrupted access to the best local and international content through our DStv services.”

This decision comes as welcome relief for Zimbabwean entertainment consumers, who frequently face economic pressures. By absorbing the incremental VAT cost internally, Multichoice ensures that households across the nation will not see their monthly DStv bills rise solely due to this tax change come January 2026.

The company further emphasised its local focus, noting that Zimbabwean subscriptions are designed with the country’s economic considerations in mind and play a vital role in supporting the local creative sector by benefitting local broadcasters, artists, and content producers.

Industry analysts have in the past suggested that such a move underscores Multichoice’s commitment to maintaining its customer base in a competitive market and its stated role in nurturing Zimbabwe’s entertainment ecosystem.

For local content creators and broadcasters whose work features on DStv platforms, stable subscription pricing also helps ensure continued audience reach and potential revenue streams.

For Zimbabweans seeking respite through television entertainment, Multichoice’s announcement means their favourite local dramas, sports, news, and international shows will remain accessible at the current cost, despite the slight increase in the national VAT rate.

The company’s proactive communication aims to provide certainty and avoid disruption for its subscriber base. – Follow on X @MbuleloMpofu

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