The new year will greet Singaporeans not just with fireworks but with a 1% increase in Goods and Services Tax (GST).
IKEA Singapore, however, has announced that it would be absorbing the tax hike to maintain prices on its products both in-store and online.
This is to maintain affordability and accessibility for its customers amidst the rising costs of living.
After the GST went up to 8% in January this year, the second phase of the increase will arrive very soon as 1 Jan 2024 will herald the arrival of the 9% GST.
In a 21 Dec press release, IKEA Singapore announced that it would absorb the 1% GST increase and thus keep product prices the same.
It will achieve this by ensuring “efficiencies in the supply chain” so that it can “pass on savings through guaranteed low prices for customers”.
This applies to both in-store and online items, so customers need not worry about where they choose to shop.
The Swedish furniture giant also previously absorbed the GST increase to 8% in 2023.
Additionally, IKEA lowered the prices of 144 products in September 2023 as part of a “we lower prices where we can” initiative.
The news is sure to come as a relief to many Singaporeans who are concerned about rising prices everywhere.
Source: IKEA
“Our decision to absorb the new GST rate increase fulfils our promise to customers of being the most affordable, accessible, and sustainable home furnishing retailer in the country,” said Gerard Jansen, Country Retail Director of IKEA Singapore.
We are glad to be able to keep prices down to support our customers especially in challenging times.
This measure and other initiatives match up to the retailer’s commitment to “keep prices as low as possible to help Singaporeans ‘make home count'”.
IKEA Singapore is not the only company to provide these GST cushions.
FairPrice also shared that it will absorb the hike for 500 essentials until June 2024 or 31 Dec 2024 for seniors.
Fellow supermarket chain Sheng Siong will also offer a 1% discount on most products for the first three months of 2024.
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Featured image adapted from IKEA.
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