SINGAPORE – Those shopping in Changi Airport’s public areas in 2023 will not have to pay goods and services tax (GST), which will increase to 8 per cent from the current 7 per cent from Jan 1.
But shoppers will have to register for the Changi Rewards membership programme, which is free to join, for GST on their purchases to be absorbed by the retailers, said Changi Airport Group (CAG) on Thursday.
CAG added that the GST absorption will not be extended to shops in Jewel, as well as restaurants, the Changi Eats online delivery service, and non-participating stores such as supermarkets.
The GST absorption initiative is a continuation of CAG’s and its tenants’ existing benefits for Changi Rewards members, which include GST absorption at its current 7 per cent rate.
For eight days in January, CAG will run a “2xGST” campaign to give shoppers an additional 8 per cent off their purchases. This will apply from Jan 5 to 8, as well as from Jan 12 to 15. To qualify, transactions of at least $30 have to be made, after all other discounts have been deducted.
Those who pay using the airport’s digital wallet, Changi Pay, will get an $8 Changi Pay voucher credited to their account for use on return visits.
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Ms Phau Hui Hoon, CAG’s general manager for landside concessions, said she hopes the promotion will bring some cheer to shoppers as they prepare for the festive period, and added that GST absorption – which retail shops at the airport have done since 2009 – is “a unique attraction of shopping in Changi Airport’s public areas”.
Ms Rachel Cheng, managing director of Eu Yan Sang Singapore, which has been a tenant at Changi Airport since 2014, said the coming GST increase will potentially challenge businesses as consumers are likely to cut back on spending.
She hopes the 2xGST promotion will help to attract more shoppers to the airport and cushion the impact of the GST increase on retail shops.
The airport will also be running Chinese New Year promotions.
From Jan 5 to Feb 5, 2023, those who spend $80 in a single receipt or $100 at the supermarket can redeem a set of red packets and a 20 per cent discount Changi Eats promotion code. Those who pay by Mastercard or Changi Pay will get an additional set of red packets.
The full list of stores where GST will be absorbed, and where the 2xGST promotion is applicable, is available at www.changiairport.com/2xgst
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This article was first published in The Straits Times. Permission required for reproduction.