Irish hairdressers call on govt to scrap 'unjust' plan to raise VAT rate

Irish hairdressers are calling on the government to scrap an "unjust" plan to raise VAT in the hairdressing sector. 

A nationwide campaign was launched today (Tuesday January 31) by the Irish Hairdressers Federation in a bid to prevent the sector's VAT rate rising from 9% to 13.5% as of March 1, 2023. 

The Federation - which represents over 500 salon owners nationwide - called the plan "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". 

Restaurants and hotels will also see an increase in VAT to 13.5% from the start of March. 

Irish Hairdressers Federation President, Danielle Kennedy, commented on the campaign and 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." 

The organisation has previously called on the government to not only maintain the 9% VAT rate for the hairdressing industry, but to reduce it to 5%. 

Kennedy continued: "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."