The Irish Hairdressers Federation has today (Tuesday 31st January) launched a nationwide campaign to keep the VAT rate for the hairdressing sector at 9% ahead of the Government’s plan to raise it to 13.5% on 1st March. The Federation says this is ‘’an unjust and nonsensical tax burden on businesses that have suffered gravely during Covid and small businesses who are most at risk from ruinous inflation.’’
The hairdressing sector is included in the same tax band as the hospitality sector and is set to see its VAT rate increase to 13.5% from 9% on 1st March along with restaurants and hotels.
Commenting at the launch, Irish Hairdressers Federation President Danielle Kennedy said; ‘’The reality is very simple for hair salons in Ireland, this VAT increase will ruin them. Hair salons have seen their costs explode skywards over the past year as they struggled to get back on their feet after Covid. This will increase costs for hair salons even further, which means salons may have to increase prices, which means less customers, which means even more pressure. For example, electricity costs have doubled in many cases from two years ago, which is already killing off hair salons.’’
Danielle Kennedy went on to say; ‘’You have to question if the Minister is in touch with reality as it makes no sense for the Government to be doing this at a time when small businesses are struggling more than ever. There are 25,000 people employed in this sector, many of them working in salons on the main streets of small towns and villages. Hair salons are a huge part of their communities and provide a vital service, particularly to elderly people who don’t feel comfortable going out in public without having their hair looking well. Government policy can’t continually reward large multinational companies while increasing costs for small businesses who employ people in their communities.’’
The Irish Hairdressers Federation is the representative body for Irish salon owners, representing over 500 salon owners nationwid
