Hairdressers call for restoration of 9% VAT rate

Wed, 24 Jul, 2024 - 12:27

James Cox

The Irish Hairdressers Federation (IHF), a representative organisation for hairdressers and hair salons across Ireland, has unveiled its pre-budget submission to Government ahead of the 2025 Budget which takes place on Tuesday, October 1st.

The key demands from the hairdressing sector include;

The restoration of the 9 per cent VAT rate.
Greater engagement with business owners to ensure the introduction and implementation of a living wage that is sustainable for businesses.
Extend the repayment terms for warehoused debt and apply 0 per cent interest for any legacy debt owed to Revenue.
Provide more targeted grants and supports for salons concerning high energy costs and rates.
Reduce employer PRSI contributions for employees in SMEs.

The IHF has called on Minister for Finance Jack Chambers "to act now and safeguard the future of the hairdressing industry".

The IHF said the industry is facing its most challenging time yet since the recession over 16 years ago due to recent changes in legislation, increasing labour costs, energy costs and an increase in the overall cost of living. These increases are "placing a heavy financial burden on salon owners throughout the country".

Commenting on this, Lisa Eccles of the Irish Hairdressers Federation, said: “We call on Government to freeze on further labour market policy measures that have a direct impact on our members”.

Ms Eccles added: “Some of our members have simply felt unable to continue their business and livelihood and have chosen to close their doors. At a time when the world’s energy costs are dropping, many of our members are baffled as to the high costs of energy which they have to absorb on a daily basis. We call on Government to take immediate action and provide extra support to salons owners across the country.”