IHF Nails 9% VAT rate retention

Federation secures an extra six months at current rate

L-R Danielle Kennedy, Rossa Danagher & Lisa Eccles outside Leinster House

The Irish Government has extended the 9 per cent VAT rate for the hair industry for a further six months, following passionate campaigning by the Irish Hairdressers Federation. 

The plan had been to increase VAT to 13.5 per cent on 1 March. However, the current VAT rate of 9% will remain until 31 August. 

Danielle Kennedy, IHF President, said: “The announcement is clear recognition by the Government of the challenges facing the hairdressing industry. The decision to extend the 9 per cent VAT rate is critical to the 25,000 people employed in this sector, and also to the communities that they serve. While this isn’t the end of the road for us and our lobbying activities, it’s a positive start.” 

In January, the IHF launched a nationwide campaign to keep the VAT rate for the hairdressing sector at 9 per cent. It collaborated with Octavian Economics to prepare a detailed report called A Fatal Cut, which was submitted to Government. It detailed the key reasons why Government intervention was needed to support what is already a vulnerable industry and how failure to act could possibly put possibly thousands of people at risk of unemployment. 

Members of the IHF were then encouraged to get involved in a grassroots campaign, with guidance on how salon owners could contact their local representatives to share the pressures they are facing within their businesses. 

The Federation has stated that it will “continue to lobby Government in the hopes of securing a permanent 9 per cent VAT rate for the Industry”. 

Danielle Kennedy thanked IHF members for their collective efforts, confirming that their “contributions were essential” to achieving the outcome. 
 

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