President of the Supermarkets Association of T&T (SATT) Dr Yunus Ibrahim says while some products on grocery shelves still carry prices with the old 15 per cent rate of Value Added Tax (VAT), the correct prices will be applied at the cash register.
"Prices are correct in all the stores that we have spoken to," he told the T&T Guardian yesterday, on the first day that the new 12.5 per cent VAT took effect.
"The issue at hand is the pricing, labelling and that is going to take time but consumers should rest assured the prices are proper at the register," he added.
Ibrahim said the process of changing labels could take a number of days: "From what I have heard from our members the changing of the physical prices on the labelling is taking up time."
He said SATT was working with its members to "iron out" any other problems they might be experiencing with the VAT change.
Ibrahim said he did not expect consumers to be affected adversely by the new VAT regime.
"I think the patterns will remain the same and people will look at their bills and see what adjustments they will have to make in the long run. I do not think it is going to raise their basket more than $50 to $75," he said.
Ibrahim had said in an interview last week that since the announcement of the VAT implementation date supermarket owners have been working late to prepare for the change.
"This entails training employees, working with computerised and non-computerised systems, at the very least ensuring the cash register will have the 12.5 per cent VAT," he had said.
Finance Minister Colm Imbert announced in January that approximately 99 food items, mainly processed food, have been removed from the VAT zero-rated list.