SINGAPORE — Ikea Singapore will absorb the Goods and Services Tax (GST) increase that will kick in from Jan 1 next year, when the GST rate increases from 8 per cent to 9 per cent.

The Swedish furniture chain said on Thursday (Dec 21) that it would not increase both its in-store and online prices after the 2024 GST hike to ensure that its home furnishing products “remain affordable for the many people in Singapore” amid rising costs of living.

To “pass on savings” to its customers through “guaranteed low prices”, the furniture giant “made extra efforts… to ensure efficiencies” in its supply chain this year, it said in a press statement.

In recent weeks, other retailers such as supermarket chains FairPrice Group and Sheng Siong have announced that they would absorb the one percentage point increase in GST for certain products for three to six months in 2024.

This year, Ikea Singapore similarly absorbed the GST increase when it rose from 7 to 8 per cent, along with other retailers such as spectacles chain Owndays and supermarket chains Giant and Sheng Siong.

Additionally, the furniture firm lowered prices on 144 items in September. It said that the move is to reinforce its “ongoing commitment to keep prices as low as possible”.

Mr Gerard Jansen, the country retail director for Ikea Singapore and the Philippines, said on Thursday: “Ikea Singapore remains committed in our mission to create a better everyday life for the many people and we are glad to be able to keep prices down to support our customers especially in challenging times, when they need it the most.

He added: “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.”