Irish consumers will be facing higher prices for fuel, hospitality and hairdressers from Friday as the Government increases VAT and excise duty.
The lower 9 per cent VAT rate on hospitality businesses will come to an end, increasing to 13.5 per cent from midnight.
Excise duty on fuel will also increase, meaning petrol will cost an extra 7 cents per litre, and diesel 5 cents more.
There have been calls on Minister for Finance Michael McGrath to reconsider the excise increases by various industry lobby groups.
Economist Jim Power said the VAT and fuel duty increase on September 1st will add significantly to the cost of living and should have been postponed by the Government.
He told Newstalk radio: "Unfortunately these increases are coming on top of pre-existing price pressures, because we've seen, due to international developments, the price of energy rising in recent weeks, and that's already been reflected in more expensive petrol and diesel at the petrol pumps."
He added: "There is nothing forcing the Government to increase both of those taxes. In the budget, I would expect to see money being directed at the poorest sections of society to help them deal with the cost-of-living crisis that's out there at the moment."
By Tomas Doherty
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