IKEA Singapore will be absorbing the one percent goods and services tax (GST) rate increase from Jan. 1, 2024, as the GST rate will increase from eight per cent to nine per cent.

At the same time, the company pledges to maintain its prices on offerings in-store and online.

Absorb 2024's GST hike

In a press release, IKEA Singapore said this is part of its efforts to ensure that their home furnishing "remain affordable for the many people in Singapore amidst rising costs of living".

The retailer stated that it has made it a point to streamline its supply chain operations over the past year so that it can pass on these savings to customers.

Gerard Jansen, Country Retail Director of IKEA Singapore and Philippines, said: “We are glad to be able to keep prices down to support our customers especially in challenging times, when they need it the most. 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."

Initiatives to keep prices low

IKEA Singapore has initiatives to keep prices low, such as "We lower prices where we can", which strives to make IKEA's most popular products more affordable for the average consumer.

IKEA Singapore lowered the prices of 144 products in September 2023.

It also promised to reduce the prices of more than 60 articles by Apr. 1, 2024, according to their response to Mothership's query in Oct. 2023.

Their "New Home Package" initiative is targeted to help customers furnish their new or newly renovated homes, such as offering vouchers when customers hit certain expenditures.

IKEA had also absorbed the GST hike from seven to eight per cent in 2023.

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Top image via IKEA.