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People in Singapore are rushing to buy big-ticket items before the 8 per cent goods and services tax (GST) kicks in on Jan. 1, 2023, Shin Min Daily News reported.

GST in Singapore will increase from 7 per cent to 8 per cent from Jan. 1, 2023, followed by another increase from 8 to 9 per cent on Jan. 1, 2024

Buy first, ship later

One couple, who do not even have their new condominium apartment ready, went on a buying spree to snap up more than S$9,000 worth of electrical appliances at one shot, and effectively saved about S$100 by settling the bill on the spot.

The 36-year-old woman told Shin Min that the good deal stems from the year-end sale and cost savings from paying 7 per cent GST only, with the merchant even allowing the newly bought appliances to be stored in its warehouse for the time being for safekeeping.

The appliances will then be delivered to the new apartment next year in June when it is ready.

According to merchants interviewed, the likes of such customers who shop now to take advantage of lower costs are substantial.

Some of the big-ticket items flying off shelves include television sets, washing machines, and refrigerators.

Common to buy big-ticket items for delivery later

Prior to this impending GST increase, customers who buy big-ticket items now for delivery later already make up a good proportion of the clientele of at least one merchant.

Scanteak, a furniture retailer in Singapore, was reported as seeing brisk business as it is offering storage for six months for its items purchased now, with the added bonus of allowing instalment payments at 2022 prices without customers incurring a lump sum cost.

It also charges delivery fees according to 2022 pricing.

For storing the purchases beyond the sixth month, a charge of S$50 or 10 per cent of the total price of the goods will be incurred.

For storage from the eighth month, weekly costs will be incurred.

Courts, the electronics and furniture store, also offers the storage service for six months.

If customers opt to have the items delivered this year, the delivery will be free of charge.

Buyers beware

The Consumer Association of Singapore said on Facebook on Dec. 13 that buyers of big-ticket items should protect themselves by negotiating for a low deposit if possible, and only make full payment upon delivery of goods.

Consumers should also consider if they are making hasty purchases this time of the year.

Top photo via Shin Min Daily News