FairPrice to offer discount offsetting GST raise

The discount will be implemented on national brands and house-brand groceries.

FairPrice Group (FPG) will implement a 1% discount on 500 essential items for the first six months of 2024 to offset the 1% goods & services tax (GST) increase for the said products.

In a statement, the company said the initiative will be implemented across all FairPrice supermarket retail formats, including FairPrice Online, and will be extended to the members of the Pioneer Generation (PG), Merdeka Generation (MG), Community Health Assist Scheme Blue cardholders (CHAS).

ALSO READ: FairPrice Group commits $2.9m to help SMEs in cash flow and business survival

These essential items will be composed of national brands and house groceries such as fresh fruits, vegetables and meat, staples, dairy, paper products, detergents and household cleaners.

The GST will be increased to 9% from 8%, starting on 1 January 2024.

“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,” said Group CEO Vipul Chawla.

Meanwhile, FPG will also extend the discounts to PG, MG, and CHAS members until 31 December 2024.

Since 2019, the company has returned S$780m (US$584.1m) through discounts, rebates, and donation schemes. In 2022, it returned over S$200m (US$149.8m) to the community and is expected to repay the same this year.