IHF renews its call for 9% VAT rate retention

The Irish Hairdressers Federation has renewed its call for the retention of the 9% VAT rate for the sector ahead of its scheduled rise to 13.5% on 1 March.

Hairdressers come under the hospitality industry VAT rate, which was cut temporarily due to the Covid-19 pandemic.

With 25,000 people employed in the hairdressing industry, the IHF said a return to the higher VAT rate will lead to job losses as salons will be forced to close.

The organisation warned that the 13.5% rate will “ruin” the sector, as it will trigger higher prices and lead to fewer clients. The industry is already struggling amid the current climate of rising business costs, it noted.

“It makes no sense for the Government to be doing this at a time when small businesses are struggling more than ever,” said IHF president Danielle Kennedy. “Electricity costs have doubled in many cases from two years ago, which is already killing off hair salons.”

Government policy cannot “continually reward large multinational companies while increasing costs for small businesses which employ people in their communities”, she added.

The IHF's VAT reduction campaign is supported by the Hair and Beauty Industry Confederation (Habic), which has also been lobbying the Government to retain the 9% rate.