Ikea Singapore to absorb increase in GST from Jan 1, Latest Singapore News - The New Paper

Ikea Singapore to absorb increase in GST from Jan 1

Home furnishing brand Ikea Singapore will absorb the 1 percentage point increase in goods and services tax (GST) in 2024.

Prices will remain the same in store and online, an Ikea spokesperson said on Dec 21, adding that this initiative is part of its efforts to ensure that its products remain affordable for Singaporeans amid rising costs of living.

When contacted, the spokesperson said that Ikea has not set an end date to this initiative.

Mr Gerard Jansen, country retail director for Ikea Singapore and the Philippines, said: “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.”

Ikea Singapore had also previously absorbed the GST increase from 7 to 8 per cent in 2023, and lowered prices on some of its items in September 2023.

The GST rate will be raised from 8 per cent to 9 per cent on Jan 1, 2024.

This is the second of a two-stage rate hike that started on Jan 1, 2023.

Other than Ikea Singapore, supermarket chains FairPrice and Sheng Siong will also implement schemes in 2024 to cushion the tax hike’s impact on its customers.

FairPrice Group announced on Nov 27 that it will absorb the 1 percentage point GST increase on 500 essential items – including rice, fresh fruits and vegetables – for the first six months of 2024.

This initiative will apply across all types of FairPrice supermarkets and stores, including FairPrice supermarkets, FairPrice Shop stores, FairPrice Finest outlets, FairPrice Xtra hypermarkets and FairPrice Online.

Sheng Siong, which has 67 outlets islandwide, said on Dec 15 that it will also be offering a 1 per cent discount on almost all items for the first three months of 2024.

Items like alcohol, tobacco, medicinal products and devices and certain types of infant formula are excluded from this discount.

Both FairPrice and Sheng Siong had also previously provided the same discounts in 2023 when GST rose from 7 to 8 per cent.