A Dublin hairdresser fears the increased VAT rate announced in today's Budget will see customers turn away from the salon and to the shadow economy instead.
The Irish Hairdresers Federation had asked the government to keep the 9% rate to help small salons keep their doors open. However, Minister Paschal Donohoe today confirmed that the 9% VAT rate for the tourism and hospitality industry will expire as planned on February 28, 2023.
Lisa Eccles from Zinc Hair & Beauty in Kilmainham said that many people would turn to the shadow economy to get their hair done as salons struggle to keep their doors open during the cost of living crisis. The spokeswoman from the Irish Hairdressers Federation said that hairdressers have been largely forgotten about in today's budget.
