The pub chain said it is to reduce prices on a range of products, including real ale, coffee, soft drinks, breakfasts, burgers and pizzas, with all reductions fully implemented by July 20.
Pints of beers will be discounted by up to 50p each in 764 venues, although the VAT cut does not cover alcoholic drinks.
However, prices for real ale will be up to £1 higher at the company’s other 103 pubs located in major town and city centres, airports and stations.
“Lower VAT and tax equality will eventually lead to lower prices, more employment, busier high streets and more taxes for the government,” said founder and chairman Tim Martin.
Late on Friday, Martin offloaded 510,000 shares in the publican at 984p each, at a 2% premium to Thursday’s closing price, cashing in £5mln. He now has a 27.39% stake.
Shares advanced 3% to 981.5p on Monday at noon.