Around 15,000 pubs and restaurants across the UK are expected to cut the price of all food and drink by 7.5% on Wednesday 24 September, as they back Tax Equality day, which is now in its second year.
The initiative, thought up by veteran lobbyist Jacques Borel, aims to highlight the benefit of a VAT reduction to the hospitality industry.
Prices will be reduced for one day only in a bid to show consumers the effects of a VAT cut from 20% to just 5% - a 7.5% cut in the overall price is equivalent to a reduction in VAT by this amount.
Almost 40 companies have confirmed their participation, together with individual pubs and restaurants across the country. Many of those businesses that are taking part are part of Borel's lobbying group VAT Club.
Including among those businesses planning to cut prices are: Punch Taverns, J D Wetherspoon, TGI Friday's, Daniel Thwaites, Wadworth & Co, TCG Pubs, Everards and Fuller's.
Smaller companies, such as Anglian Country Inns, Snug Bars and Pub Love are also involved.
Borel said: "A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector.
"We are delighted with the response from the industry and expect many more companies and individuals to show their support for Tax Equality Day between now and the day itself."
Wetherspoon founder and chairman Tim Martin, who will be lowering prices in the company's 930 pubs, added: "We're aiming to make it the busiest day of the entire year."
James Nye, managing director of Anglian Country Inns, which has five pub restaurants in the East Anglia region said: "We are proud to support the campaign to reduce the level of VAT within the hospitality sector. It will help people understand the tax burden the industry bears and if the campaign is ultimately successful it will help narrow the gap between pub prices and supermarket prices. It will be a much needed boost to the pub and restaurant industry, lowering prices and creating jobs at the same time."