Supermarket chain Fair Price Group to absorb GST hike for 500 essential items in first six months of 2024

Supermarket chain Fair Price will absorb the upcoming 1 percentage point increase in GST for some daily essentials for the first half of 2024, in what the company said was an effort to cushion the tax hike’s impact on consumers

The scheme will offset the tax hike on 500 essential items, including rice, fresh fruit and vegetables, and toilet paper.

Fair Price Group (FPG) announced the scheme on Nov 27, saying it was part of a move to “assist Singaporeans during these times of stubborn inflation resulting in an unprecedented rise in the cost of living”.

On Jan 1, 2024, the goods and services tax (GST) rate will go up from 8 per cent to 9 per cent, the second of a two-stage rate hike that started on Jan 1, 2023. The items covered under the scheme are products that the supermarket chain’s customers purchase frequently, said FPG.

They comprise national brands and house brand items and include fresh produce, staples, dairy, meat, paper products, detergents and household cleaners.

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