The minimum VAT rate is so important to the hairdressing sector in maintaining cost-competitiveness and providing a reasonable prospect for employers to sustain their businesses through these challenging times.
Earlier this year the Hairdressing Council lobbied the Government on behalf of its members that the 9% VAT Rate must NOT be increased for the Hairdressing Industry. The industry is still experiencing a very difficult economic climate, despite an apparent upsurge in the economy generally. Retaining the 9% VAT rate will assist the industry in maintaining current levels of employment, and expanding where possible. There is much speculation within the media that the Government plans to increase of the Minimum Wage by 30c in line with recommendations of the Low Pay Commission. This prospect, together with the possibility of a VAT increase, is causing huge concern within the hairdressing sector, which operates on very tight margins in order to be cost competitive. Members of the Irish Hairdressing Council have not experienced any notable upsurge in business, such as would accommodate increased pay or VAT rates. Such increases, in their view, would have negative results for the sector, and would simply drive more workers onto the dole queues.