As supermarkets across the country prepare to implement the reduced rate of VAT from 15 % to 12.5 % come February 1^st, consumers falling into the lower income and lower middle-income bracket say they will end up paying more for less.

With the government slapping on a 12.5 % VAT on basic food items which were previously zero rated, the average lower middle-income earner with a monthly salary ranging from $5,000 to $7,000 says his or her money would now have to be stretched even further.

President of the Supermarkets Association Dr. Yunus Ibrahim agreed that some consumers would now have to pay more.However he disagreed that there could be job losses and closure of small businesses resulting from the move.

Mr. Ibrahim said he did not think anyone should be increasing their final price to add VAT as there is no need for it. He said at the end of the day the reality is that the public needs to choose wisely.