The 2% VAT increase announced in the Budget comes into effect at midnight.
Fianna Fáil Finance Spokesman Michael McGrath has said the hike will further depress consumer sentiment at a time when the domestic economy is at its weakest.
He described the move as a "major policy mistake" by the Government, saying it will also affect thousands of small and medium-sized businesses.
VAT will increase from 21% to 23%.
