Retail giant IKEA has launched its Second-Hand Tax (SHT) initiative in Ontario at its As-is Marketplaces to promote sustainability and affordability.
The initiative saves customers from paying the 13 per cent HST (harmonized sales tax) twice in the province.
Currently until April 11, IKEA stores across Ontario will offer the SHT to IKEA Family members looking to shop more sustainably and affordably. Every item purchased in the As-is marketplace in-store will be reduced by 13 per cent to offset the tax burden, making shopping circular even more attractive, said the retailer.
“We believe in doing more with less,” said Selwyn Crittendon, IKEA Canada CEO and Chief Sustainability Officer. “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.
“This is really about making sure that we bring meaningful change . . . It’s a counter tax that saves the value of HST on our second-hand items.”
Unfortunately today every time a second hand product is sold it is taxed.
The initiative, he said, helps to bring about a more circular economy and push for change to happen.
But SHT isn’t a permanent solution, said IKEA Canada, which is inviting the government and like-minded companies to help them put an end to the double tax on second-hand items, so that all Canadians can shop circular for less. Signing up for IKEA Family is free on IKEAFamily.ca. To show support for ending the double tax on second-hand items, the company is asking people to visit change.org.
“It’s a great initiative but we need more people and as of today we’ve got over 3,200 people that have signed our petition to make that change,” said Crittendon.
“IKEA believes second-hand furniture shouldn’t have another tax if we’re encouraging Canadians to do more with less. With our Second-Hand Tax initiative we aim to spark conversation about the unfairness especially with government and community stakeholders.”
He said it’s another way of helping consumers and sparking some change in behaviour by helping them save 13 per cent on purchases.
“We want to make sure that affordability and sustainability are the true super powers of how we move forward. They should be lockstep but unfortunately it’s not always the case when you tax second-hand goods,” added Crittendon.
Given the cost-of-living crisis, making life more affordable needs to be a priority, said IKEA. According to the annual IKEA Life at Home report, two thirds of Canadians (67 per cent) are concerned with the general economy and more than half (57 per cent) with household finances.
“That’s made IKEA Canada take a stand, urging consumers to shop sustainable and affordable second-hand options that are good for our planet and their wallets,” said the retailer.
Crittendon said the initiative began in Ontario and the impact already has been major. It has resonated with consumers in the province.
For IKEA, it’s not so much just about the opportunity for consumers to save money but it’s an opportunity to make change.
The initiative is part of Earth Month, a time to celebrate the planet and take action to protect it. Earth Day is Monday April 22.
Crittendon said the SHT initiative is only in place in Ontario right now but the company is “looking at many more ways to spark this conversation.” This initiative is just a step in that direction.
“This is not just IKEA trying to try another sales gimmick. This is IKEA taking the conversation and really bringing affordability and sustainability together in one topic. And if we can find a way to remove the tax on second-hand goods, this is an opportunity where we band together and we sign that petition and we make sure that we can make lasting change for many Canadians across this country,” he said.
The IKEA As-is Marketplace is a place where the retailer sells discontinued items, gently used and even its ex-showroom displays.
