Fashion-conscious can rejoice as online retailer Zalora promises to absorb GST

Online fashion retailer Zalora has promised to absorb the 6% goods and services tax (GST) on all its items if customers use a special voucher code.

Overall, it said that its prices would be lower by 5%, even with GST, because it was only raising the prices on its website by less than 1%.

"We decided to go all in, with the new ‘GSTOFF’ voucher, prices on Zalora will be lower than they were before GST," the online retailer's managing director for Malaysia Giulio Xiloyannis said in a statement today.

"Not only has Zalora decided not to increase its prices by the 6% new GST levels, with prices pre-voucher rising less than 1% across the whole website, (we) decided to also apply a storewide 6% discount available to all customers, hence actually lowering prices for all by 5% compared to pre-GST prices," he added.

"GSTOFF" is an online voucher that will be activated March 31, a day before the GST takes effect on a broad range of goods as part of Putrajaya's move to increase government revenue.

"It will be guaranteed by Zalora for the whole month of April 2015,” said Xiloyannis.

He said the voucher would apply to all Zalora in-house labels and international brands, and to 90% of the other brands on the online retailer.

The fashion retailer joins local hypermarket chain Mydin as one of the few retailers so far who have announced that they will absorb the GST. – March 30, 2015.