By Val Matthias. Updated 1:14 p.m., Tuesday, August 25, 2026, Atlantic Standard Time (GMT-4).
Authorities in St Vincent and the Grenadines say they are closely monitoring prices ahead of Friday’s VAT-Free Day amid concerns that some businesses could attempt to increase prices before the tax break takes effect.
The Inland Revenue Department and the Consumer Affairs Division have been conducting price checks and benchmarking exercises in the lead-up to the event.
In an interview on WEFM on August 25, comptroller of Inland Revenue Kelvin Pompey says officials have been gathering information on prices to determine whether any unusual increases occur before the VAT exemption comes into force.
Consumer Affairs officers and Inland Revenue auditors will be deployed across the country on the day itself to ensure the full value of the tax savings is passed on to shoppers.
Mr Pompey said he does not anticipate widespread price gouging, arguing that businesses benefited from increased customer traffic during the first VAT-Free Day and have an incentive to maintain consumer confidence.
The Inland Revenue Department says it received no verified reports of price manipulation or other wrongdoing during the December 2025 VAT-Free Day.
Nevertheless, officials acknowledge that this year’s initiative may be more difficult to police because only selected categories qualify for VAT-free treatment.
Unlike the December 2025 initiative, which removed VAT from almost all goods except alcohol and cigarettes, this year’s exercise is limited to four categories: school supplies, groceries, non-alcoholic beverages and toiletries.
Consumers who believe they have been incorrectly charged or have concerns about transactions are being encouraged to seek assistance from Inland Revenue officers or Consumer Affairs personnel, who will be stationed at business locations throughout the day.
The VAT-Free Day will be held on August 28, officials are encouraging consumers to focus on items that do not normally attract VAT, noting that many food products, including chicken, baby formula and other essentials, are already VAT-free throughout the year.
The Inland Revenue Department says officers will be stationed at business places across the country and consumers will be able to report concerns or seek clarification during the event.
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