The Inland Revenue Department (IRD), in close collaboration with the Consumer Affairs Division, is launching a comprehensive price monitoring and compliance campaign ahead of the upcoming VAT-free day on Friday, August 28, 2026.
The joint initiative aims to prevent price gouging, verify business compliance, and ensure that the legislated tax savings are passed directly into the pockets of consumers.
To protect shoppers from artificial price inflation, the Consumer Affairs Division has been actively conducting pre-emptive price benchmarking across the country. According to IRD Controller Kelvin Pompy, these teams have been deployed to establish price baselines for weeks leading up to the event.
“We want to get a good feel as to whether or not there’s been any increase in prices before the VAT-free day,” Pompy explained.
While Pompy does not anticipate widespread price gouging—noting that the local business community benefited significantly from increased sales during the previous VAT-free day in December and should be motivated to maintain consumer trust—monitoring teams will remain highly visible on the ground to safeguard the public.
On August 28, IRD auditors and officers wearing official Inland Revenue jerseys will be stationed on the streets and inside retail establishments to offer real-time guidance and address consumer complaints. Following a public suggestion during a recent radio broadcast, the department is also adopting high-visibility vests to make these ground teams even easier to spot in crowded environments like supermarkets.
In addition to physical patrols, the IRD is establishing six dedicated cell phone hotlines. These numbers will be published on the department’s Facebook page, allowing shoppers to instantly call for assistance or report questionable pricing practices while still in stores.
The IRD’s compliance campaign will continue long after the doors close on Friday evening. Under the department’s compliance monitoring plan, auditors will visit retail establishments to sample sales records and receipts, ensuring the “rules of engagement” were strictly followed.
This year’s event is more complex than December’s storewide VAT holiday, as tax relief is restricted to four specific categories: school supplies (including uniforms, shoes, and community college jeans), groceries (covering all supermarket items except alcohol and tobacco), non-alcoholic beverages, and toiletries.
Because businesses will be selling both vatable and VAT-free items, they must implement coding adjustments on their point-of-sale systems.
IRD auditors will verify that items were classified correctly. Pompy clarified that while the department will be understanding regarding minor classification errors in gray areas like toiletries, they will audit businesses outside the four core categories. Establishments such as hardware stores, appliance retailers, and furniture shops that run independent promotions must still remit the standard VAT on those transactions.
The IRD is calling on consumers to act as the primary line of defense. Shoppers are encouraged to prepare targeted shopping lists, focus on items that are normally vatable rather than those already zero-rated, and carefully examine their receipts.
The department also reminded the public that removing the 16% VAT results in an actual savings of 13.75% (rounded to 14%) on their total bills. Consumers who notice discrepancies are urged to raise their concerns immediately with on-the-ground officers, contact the hotlines, or submit receipts to the IRD for official verification.
