It's believed the lower 9% VAT rate for hospitality and hairdressing will be scrapped at the end of the month.
The lower rate, for hotels, restaurants, and hairdressers, was first introduced in 2011 following the financial crash and extended during the Covid-19 pandemic.
It's expected the rate will return to 13.5%.
Government ministers are putting together a new cost-of-living package to help people deal with rising prices.
Coalition leaders and senior ministers had what was described as a "good discussion" yesterday in relation to the next round of measures.
The focus is said to be tilted towards families with lower-incomes.
The government has four days until its own deadline to sign off on the package by Tuesday, with the current measures expiring on February 28th.