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Dan White: What it's going to cost you - and why you might face a vicious Budget soon

Taxpayers look out. We may have a new Government but it is taxpayers as usual who will end up getting the mucky end of the stick.

While Fine Gael will be able to claim that it has kept its promise to introduce no new taxes on work, with income tax credits, rates and bands being maintained at their current levels, there is of course more than one way to skin a cat.

The standard VAT rate will rise from its current 21pc to 23pc over the life of the current Dail. This will cost each one of us every time we put our hands in our pockets. This will be only partially offset by a reduction in the low VAT rate from 13.5pc to 12pc.

For a family with a joint income of E50,000 a year a 2pc increase in the standard VAT rate will still cost them over E500 per year once spending on food, which is mostly exempt from VAT, and spending on low-VAT rate items is taken into account.

However, it is the new site value tax, basically the re-introduction of domestic rates which were abolished in 1978, which will really hurt most families. Given that the re-introduction of rates is going to be so controversial there is absolutely no point in introducing the new tax at a low rate -- the political pain just wouldn't be worth the piffling amounts of revenue that a low rate would raise.

Most economists reckon that a E1,000 tax on each one of the country's 1.5 million households, which would raise E1.5bn for the exchequer, is on the cards.

We will also be paying water charges. Until every house in the country is metered, this too will be a flat charge. The general expectation is that we can eventually expect to pay E400 per household, which would raise a further E600m in revenue for the new government.

Add it all up and the average household is going to end up paying at least an extra E2,000 a year.

Taxpayers should also be keeping a very close eye on the new government's plans to introduce universal health insurance. While this is being dressed up as introducing equality of access to healthcare, middle-income earners will end up paying even more than they currently do in VHI premiums.

For those of you who are incurable optimists, and can still afford to travel abroad, the Programme for Government isn't all bad news. The travel tax, which had already been reduced from E10 to E3 by the outgoing government, is going to be scrapped, while the reduction in the lower VAT rate will cut the price of restaurant meals and hotel accommodation.

During the General Election, our soon-to-be-Taoiseach Enda Kenny made great play of what the new government would do in its first 100 days of office.

So how much of the Programme for Government can be implemented within 100 days? In practice, any of the taxation changes can only be introduced in a new budget.

So that means that we can all breathe a sigh of relief until at least next December, right? I wouldn't bet on it. The fiscal situation facing the new government is grim, almost certainly much worse than we were told during the General Election campaign. Don't be surprised if one of the first things it does is introduce an emergency budget.

In fact even as you are reading this article Ajai Chopra, the IMF's man in Ireland, is most likely penning a letter to the new Finance Minister(s). It probably begins something like this: Dear Michael and Joan, May I respectfully suggest...