IHF say hands off VAT rate rise Creative HEAD Magazine

The Irish Hairdressers Federation (IHF) is fighting to keep the 9 per cent VAT rate on hairdressing in place

IHF-President-Lisa-Eccles-profile-EDITED

The Irish Hairdressers Federation (IHF) and the Restaurants Association of Ireland have urged finance minister Michael McGrath to keep the 9 per cent VAT rate on hairdressing and restaurant costs in place.

Earlier this year, the two industry organisations had separately and successfully campaigned to maintain the VAT rate to 9 per cent with a review to take place by 1 September. Both are keen to see this rate maintained in order that businesses survive and thrive despite the onslaught of rising costs, high energy bills, and various other negative economic factors at play.

The IHF, which represents more than 500 salon owners across Ireland, has called for an urgent meeting with McGrath to highlight the negative impact a VAT increase would have on the hair sector. President Lisa Eccles said: “Since Covid, salons have faced many challenges in getting their doors back open from increased costs for hairdressing products to enormous energy bills. Also, the minimum wage increase has had a dramatic effect of raising all staff wages, not to mention the new sick pay scheme which businesses must cover the cost of and the burden of warehoused debt that must have a payment plan with revenue commissioners to avail of tax compliance certificates.”

Lisa added: “Many of our customers are finding it hard to cope with the cost-of-living crisis remaining high. For the minister of finance to now raise the VAT for people to have their hair done and to go out to eat is going to become unaffordable. Today we jointly call on the minister to please do not to touch our VAT of 9 per cent.”

Adrian Cummins, chief executive of the Restaurants Association of Ireland, said: “The Irish don’t want consumer taxes to be increased at this time when incomes are under so much pressure. The vast majority of hospitality businesses are SMEs with modest profit margins and will have no choice but to pass a VAT increase on.”