The cost of public services like rubbish collection could be set to increase as a result of a legal threat issued by the European Commission.
The EC warned yesterday that the Government's policy of exempting public services from VAT is a breach of European law.
The warning could see things bin charges and car-parking fees going up by 21% in order to bring Ireland into line with the EU.
The commission has given the Government two months to rectify the situation of face legal action before the European Court of Justice.