SINGAPORE: The FairPrice Group (FPG) announced on Monday (Nov 27) that from Jan 1, 2024, the date when another one per cent will be added to the Goods and Services Tax (GST), it will offer a one per cent discount on 500 essential items to offset the GST hike. These essential items include fresh fruits, vegetables, meat, staples, dairy, paper products, detergents, and household cleaners—items deemed needed most and bought most frequently.
This discount, which will take effect for the first six months of next year, is part of the company’s commitment to moderate the cost of living amid stubborn inflation rates. Toward the same aim, the FairPrice Pioneer Generation (PG), Merdeka Generation (MG), and CHAS Blue discount schemes will be extended for another 12 months at all FairPrice stores for all of 2024. “Eligible customers only need to present their membership cards (PG, MG or CHAS Blue card) at cashiers upon checking out their purchases. At self-checkout counters, customers must select the relevant PG, MG, or CHAS Blue card discount option. These discounts are valid for up to S$200 per transaction per day,” FPG said.
The GST increase from 7 to 9 per cent, which was delayed due to the COVID-19 pandemic, had been earmarked for infrastructure projects and to fund social spending for the country’s ageing population. The one per cent discount offered by FPG for 500 essential items will essentially offset the one per cent GST hike and applies across all FairPrice supermarket retail formats1, including FairPrice Online.
“Despite significant inflationary pressures, FairPrice Group remains steadfast in our commitment to alleviate the rising cost of daily essentials, particularly for the more vulnerable among us. It is clear that in the current economic environment, our customers are watching their spending more than ever. FPG will continue to work hard to help all in Singapore make every dollar count so as to maintain their quality of life and feed their families well,” said Mr Vipul Chawla, Group CEO, FairPrice Group.
This is not the first time FPG has carried out such an initiative. In 1994, it also provided discounts when the 3 per cent GST was introduced. FPG extended the same discount in 2007 when the GST rose from 5 to 7 per cent. Last year, when the first tranche of the GST hike was implemented, FPG also provided a discount on 500 essential items from Jan 1 to June 30.
Since 2019, FPG has returned over S$780 million through discounts, rebates, and donations to the community. Over S$200 million was returned in 2022 alone, and FPG expects it to return the same amount this year.