Hospitality and hairdressing businesses will continue to close, unless the 9% VAT rate is continued.
The Restaurant Association of Ireland and Irish Hairdressers Association are making the joint call to retain the lower rate.
Insolvency rates in the hospitality sector have increased by over 200 percent.
Adrian Cummins from the Restaurants Association says these figures are primarily made up struggling food businesses.
"There's no insolvency essentially in accommodation.
"Its nearly absolutely involved in the food service businesses, which is the industry which I represent.
"As we head into the Autumn, and a VAT increase from 9% to 13.5%, we're in a perfect storm in terms of challenges for businesses to stay alive, to stay open."