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The new year usually represents new beginnings and new adventures to look forward to. However, the 1% Goods and Services Tax (GST) hike that has just come into effect, is definitely not something that many are excited about.
Even though the hike is unavoidable, supermarkets like NTUC, Giant and Sheng Siong have announced that they will be giving discounts on selected groceries to help consumers with the GST hike.
At Changi Airport, you can continue to shop smart and save on not just GST, but up to two times of that! Here's how.
GST-absorption at Changi Airport – if you are a Changi Rewards member
From 1 January 2023, Changi Rewards members who used to enjoy 7% GST absorption when shopping in the public areas of Changi Airport’s terminals will continue to enjoy GST-absorption - and this time, it is 8%.
This means that not only will you save 8%, prices at shops like Eu Yan Sang, Guardian and Unity, will be cheaper at Changi Airport than if you shopped elsewhere.
Whether you’re flying or not, you continue to save on GST when shopping at Changi Airport. For a list of retail stores in the public areas of Changi Airport, check out the directory for Terminal 1, Terminal 2, Terminal 3 & Terminal 4.
What does “GST-absorbed” mean?
Most of us are familiar with the term GST-free or tax-free. At Changi Airport, when Changi Rewards members enjoy GST-absorbed purchases, this means that the retail store is paying for the GST instead of the consumer.
Therefore, a product that’s priced at S$30 already includes the 8% GST of S$2.22 (calculation: S$30 x 8/108) and Changi Rewards members only need to pay S$27.78. Now imagine buying S$100 or S$500 worth of products – your savings will be S$7.40 and S$37 respectively!
The 2xGST shopping promotion is back
To sweeten the deal even more, Changi Airport runs its flagship 2xGST shopping promotion twice a year. This year, the first campaign will run from 5-8 and 12-15 January 2023 (Thursdays to Sundays), giving you an additional 8% discount when you spend at least S$30 nett at any retail store in the terminals’ public areas. Note that you must be a Changi Rewards member to enjoy the 8% GST-absorption and the 2xGST shopping promotion.
If you’re wondering how the 2xGST promotion works, here’s how – imagine buying an item priced at S$50. The 8% GST for this item is S$3.70 (calculation: S$50 x 8/108) and the additional 8% discount during this period is another S$3.70. Hence you only need to pay S$42.60, saving a total of S$7.40 which is a 14.8% discount from the original price (note: It’s not calculated as 2*8% aka 16%).
And the timing of this promotion can’t be better. With Chinese New Year (CNY) approaching, you may be looking for CNY goodies or new clothes and shoes. If you’re looking for bak kwa from Fragrance or Bee Cheng Hiang, baked goodies and kueh from Bengawan Solo, abalone from Eu Yan Sang, perfumes and cosmetics from The Shilla Duty Free or new bags from Sift & Pick, then this is the best time to reap the discounts from this promotion.
Not celebrating CNY? You might want to stock up on toiletries from Guardian and Unity or Chinese herbs and tonics from Eu Yan Sang since the discounts are so attractive.
How much can I save with the 2xGST shopping promotion?
If you’re wondering how much you can save, here are some examples for illustration:
Eu Yan Sang 12 Fortune Zodiac Premium Abalone Gift Set 12s (Limited Edition)
Price outside Changi Airport: S$168.00
Changi Rewards members’ price (without 2xGST promo): S$155.56
2xGST promo price: S$143.11 (you save S$24.89!)
The Body Shop Edelweiss Concentrate Serum
Price outside Changi Airport: S$88.00
Changi Rewards members’ price (without 2xGST promo): S$81.48
2xGST promo price: S$74.96 (you save S$13.04!)
Bee Cheng Hiang Applewood Sliced Pork Bak Kwa
Price outside Changi Airport: S$78.00 (1kg)
Changi Rewards members’ price (without 2xGST promo): S$72.22
2xGST promo price: S$66.44 (you save S$11.56!)
Are you now convinced that this is the best time to make a trip to Changi Airport to shop?
Pro-tip: You’ll be pleased to know that the parking charges at Changi Airport remain the same, despite the GST hike!
I’m sold! How do I sign-up as a Changi Rewards member?
The Changi Rewards membership is free to sign-up, and it gives you access to free parking, Changi and Jewel vouchers, free access to Jewel’s Canopy Park attractions, and many other perks with the points you earn with every spend at Changi Airport and Jewel. So, if you aren’t already a member, sign up now!
How about when I travel, are my duty-free purchases still tax-free?
Yes, you don’t have to pay GST when you depart Singapore because purchases made at point of departure are tax-free. When you arrive in Singapore and shop at The Shilla Duty Free stores in the Departure Transit or Arrival Halls, they are GST-absorbed.
For alcohol purchases at Lotte Duty Free upon arrival, they are duty- and tax-free but do take note of the duty-free concessions limit.
So here’s how you can shop smarter and save more money in the new year! Follow Changi Airport on social media to find out when the next 2xGST shopping promotion will happen.
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