HomeBussinessIrish Hairdressers Federation calls for cut to VAT rate

Irish Hairdressers Federation calls for cut to VAT rate

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The Irish Hairdressers Federation, which represents over 500 salon owners nationwide, has called on Minister for Finance Jack Chambers to safeguard the future of the hairdressing industry in the October Budget.

In a pre-budget submission, the federation 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, it stated.

The federation has called for the restoration of the 9% VAT rate in Budget 2025, while it also urges greater engagement from the Minister with business owners to ensure the introduction and implementation of a living wage that is sustainable for businesses.

The Irish Hairdressers Federation also wants the repayment terms for warehoused debt to be extended, with a 0% interest rate for any legacy debt owed to Revenue.

It also urges Jack Chambers to provide more targeted grants and supports for salons concerning high energy costs and rates and also cut employer PRSI contributions for employees in SMEs.

Lisa Eccles, of the Irish Hairdressers Federation, said they were calling on Government to freeze on further labour market policy measures that have a direct impact on its members.

“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,” she said.

“We call on Government to take immediate action and provide extra support to salons owners across the country,” she added.

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