Home improvement retailer IKEA Canada has launched a second-hand tax (SHT) initiative across all IKEA “As is” marketplaces, in which second-hand and ex-display items and discontinued ranges are re-sold, in Ontario, Canada.
The innovative move, co-inciding with Earth Month, aims to promote sustainability and affordability by saving customers from paying harmonised sales tax twice on second-hand items.
Go deeper with GlobalData
Canadians have previously been subject to tax on pre-owned goods, despite tax having been paid upon first purchase.
The SHT initiative, which runs from 2 to 11 April 2024, offers a 13% discount to those with IKEA Family memberships on purchases in the As is marketplace, effectively nullifying the HST for a more sustainable and cost-effective shopping experience.
IKEA Canada CEO and chief sustainability officer Selwyn Crittendon said: “We believe in doing more with less. With our second-hand tax initiative, we’re making sustainable choices that also save people money more attractive to average Canadians. It’s our little way of making a big difference.”
IKEA Canada acknowledges that the SHT is not a long-term fix. The company is calling on the government and other businesses to join in putting an end to the redundant taxation on second-hand items, enabling all Canadians to benefit from more affordable circular shopping.
The introduction of SHT comes amid the cost-of-living crisis.
The annual IKEA Life at Home report reveals that two-thirds of Canadians (67%) worried about the general economy and more than half (57%) about household finances.
In February 2024, IKEA Canada announced plans to enhance its retail presence in the country with two new plan-and-order points.
