The reduced 9% VAT rate for tourism, hospitality and some other services will expire at midnight and return to 13.5%.
The planned increase is set to go-ahead despite last minute pleas by business organisations for its retention.
The Government extended the lower rate for the final time in February.
It made the decision after an economic assessment by Government officials found there was no economic case for any further extension.
Government ministers have since consistently ruled out any further extension to the lower rate, because it is considered to be both regressive and costly.
The extension until today is estimated to have cost the Exchequer €300m in tax revenue foregone.
However, last week Ibec called for it to be maintained, warning the rise, coupled with a variety of other upcoming cost increases for businesses, would heap additional financial pressure on firms.
Ibec claimed it has played a vital role in sustaining enterprises and preserving a significant number of the more than 300,000 jobs in the experience economy, which is worth €4bn annually.
Organisations representing hairdressers and restaurant owners have also warned that an increase in the rate will put some out of businesses.
The Restaurants Association of Ireland described the move as "nonsensical" and will close the doors on many low margin restaurants, cafes and food led pubs across the State.
"The increase is wrong at a time when the country needs to reduce inflation, a VAT increase only adds to inflation," said Adrian Cummins, Chief Executive of the Restaurants Association of Ireland.
"Government need to restore the 9% VAT for Food related Hospitality businesses in Budget 2024 and we will be making the case for this when we meet with the Minister for Finance next week," he said.
"The increase to the VAT rate is the final nail in the coffin for many small cafes, restaurants and food led pubs."
The Licensed Vintners Association (LVA), which represents publicans in the Dublin area, said the rise is coming at a time when there is already an extraordinarily high rate of inflation on ingredient purchases and the cost of food preparation in what is a labour intensive, low margin business.
"We are very disappointed that the Government has decided to add to inflation with this unnecessary increase in taxation on food," said Donall O'Keeffe, Chief Executive of the LVA.
"The 9% VAT rate on food purchased in hospitality settings was at the right level, both from the point of view of domestic consumers and attracting tourism.
"By moving ahead with the VAT rise, we will effectively see menus changed across the country so the Government can collect additional taxation from the public – heaping further pressure on already hard-pressed consumers."
However, the Department of Finance previously said the rate was only extended to August in recognition of the employment in the sector and to give businesses time to transition to the changing economic and policy environment, as well as to avoid upward pressure on prices while inflation was high.
In its report published last year, the Commission on Taxation and Welfare recommended that the rate be restored to the 13.5% level and that it should be increased progressively over time.
The 13.5% rate was lowered to 9% in November 2020 to help stimulate activity in the tourism and hospitality sectors during the pandemic and was extended in May of last year, as well as in February this year.
