Angus Council will be forced to stump-up almost £40,000 to taxi drivers.
But one cabbie claims they are owed even more cash.
Taxis and private hire drivers are set to receive the windfall in the next financial year after the council revealed its licensing department had saved money due to staff reductions, but had continued to increase fees for cabbies each year.
The local authority agreed that refunds should be made to licence holders dating back from 2016/17.
During an investigation the council confirmed the financial burden would be met without direct impact on other services.
Speaking following the report one whistleblower claimed the fee recouped by cabbies should be “significantly” higher.
He believed “over-inflated” costs had seen Angus drivers turning to foodbanks.
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He added: “If you go back further than the three year period I reckon Angus drivers are due more.
“Angus Council fee prices are among the highest in Scotland.
“We spoke to one taxi operator who showed us lodging fees renewal of £104, granting fees of £306 and £33 taxi plate.
“That is £443 which is in stark contrast to Dundonian cabbies who pay £230 and serve a far larger population. We get our taxi plates made up by Dundee City Council.”
He added: “They are made up on site at a cost of £12 or £16 to a local driver, yet we’re charged £33 from Angus Council. We are being overcharged across the board.”
The council refuted any claims that financial gain had been made prior to this period.
Council financial papers highlight that during 2013 to 2016 expenditure exceeded income by between £4,887 and £16,749.
An Angus Council said there will be no further review of compensation. He added: “The council’s position is clearly set out in Report 356/19 as presented to and agreed by the Civic Licensing Committee at their meeting on 31 October.
“It details the refunds committed to, benchmarking of fees and future fee setting arrangements.”