How IKEA Singapore’s GST Absorption Could Change Your Shopping Habits

IKEA Singapore announced on Dec 21, 2023, that it will absorb the 1 percent GST rate increase that will take effect from Jan 1, 2024¹. This means that the prices of its products online and in-store will remain unchanged, despite the GST hike from 8 percent to 9 percent. How will this decision affect your shopping habits? Here are some possible ways:

1. You might shop more at IKEA

One obvious effect of IKEA’s GST absorption is that you might be more inclined to shop at IKEA, especially if you are looking for home furnishing items. 

Compared to other retailers that might pass on the GST increase to consumers, IKEA will offer you the same value for money as before. You might also be tempted by IKEA’s other initiatives to keep prices low, such as lowering the prices of over 200 products in 2023 and 2024², and offering vouchers for new home packages³.

2. You might save more money

Another possible effect of IKEA’s GST absorption is that you might save more money, either by spending less or by getting more for the same amount. 

For example, if you buy a sofa that costs $999 at IKEA, you will pay the same price in 2024 as in 2023, whereas if you buy it from another retailer that charges the GST, you will pay $1,008.90 in 2024, an extra $9.90. Alternatively, if you have a budget of $1,000, you can buy more items at IKEA than at other retailers that charge the GST.

3. You might appreciate IKEA more

Related Posts

A third possible effect of IKEA’s GST absorption is that you might appreciate IKEA more, not only for its affordability, but also for its customer-centricity and sustainability. 

IKEA Singapore said that its decision to absorb the GST hike was part of its mission to create a better everyday life for the many people, and that it had made extra efforts to streamline its supply chain operations to pass on the savings to customers¹. 

IKEA Singapore also said that it was committed to being the most sustainable home furnishing retailer in the country, by offering products that are made from renewable or recycled materials, and by reducing its carbon footprint⁴.

IKEA Singapore’s GST absorption could change your shopping habits in various ways, depending on your preferences and needs. Whether you shop more, save more, or appreciate more, you can enjoy the benefits of IKEA’s decision to support its customers in challenging times.

Tags: IKEA
Jasmine C.

Mabuhay! An upcoming Newswriter for the Asian Affairs from the Pearl of the Orient - Philippines. Avid follower of celebrity gossips, fashion news. I got into writing so that my fellow Kababayan will be constantly updated with the latest news.

Recent Posts

Anne Hathaway Casted as ‘Verity’ in Colleen Hoover’s Book Adaptation

Anne Hathaway is slated to play the much expected film version of Colleen Hoover's best-selling book Verity in front of…

November 21, 2024

Gucci Set to Revolutionize Fashion Presentations with Unified Shows in 2025 under Sabato De Sarno’s Vision

Gucci is ready to change its presentation approach for 2025 in a radical action aimed to revolutionize the fashion industry.…

November 21, 2024

South Korea’s “Korea Discount”: Addressing the Governance Gap to Boost Market Value

As world investors wait for significant changes that might solve long-standing problems of governance and responsibility in South Korea's companies,…

November 21, 2024

Pentagon Cracks Case of 2015 UFO Spotted by Navy Jet, but Doubts Persist About Government’s Explanation

Regarding the controversial 2015 UFO incident, a Pentagon official disclosed in a major development that it has cracked the riddle…

November 21, 2024

Trump’s Second Term: Key Cabinet Picks and What They Mean for America’s Future

As Donald Trump prepares for his second administration, his cabinet choices blatantly deviate from his first government. Once distinguished by…

November 21, 2024

BTS’s Jin Shines on ‘The Tonight Show’ with Super Tuna Dance and Electrifying Performance of ‘Running Wild’

To highlight his solo debut album Happy, BTS member Jin (Kim Seokjin) made a much awaited visit on The Tonight…

November 21, 2024

This website uses cookies.

Read More