Cork City Council have announced two new VAT charges which they will absorb on behalf of the people of Cork.

The Council must pay VAT at 13.5% on its refuse collection services as of today, July 1, but this new charge will not affect current customers. The council has said ‘it is not proposed to make any increase in refuse charges in 2010′ and that it will absorb the costs by making savings in the overall work of the council.”

Cork car park prices, however, are set to increase by 20c/hour as of today. Cork City Council have announced that it is facing a large VAT bill of 21% on all income generated in the multi-story car parks from today, July 1. By raising the price of the hourly rate, 50% of the VAT bill will be reached and the council have agreed to absorb the remainder by “making further savings across the board.”