New VAT rate a ‘body blow’ to hairdressers
WELL-KNOWN Kerry hairdresser Sean Taaffe has described the new increase in the Vat rate as a ‘ bodyblow’ to the industry.
He joined hundreds of hairdressers outside Government buildings on Tuesday afternoon to protest at a decision by the Government to increased the hospitality sector vat rate from 9% to 13.5% in the recent budget.
The hairdressing industry is included in the hospitality sector and Mr Taaffe says that the industry should be treated separately.
“We are not hotels, we are different. We are lumped in with the hospitality industry for Vat but not for funding,” he said.
He added that the new VAT rate will decimate the hairdressing industry, an industry which is already in crisis.
“What we are saying is that the VAT rate will stop growth in the industry. We won’t be taking on new trainees and we are already in crisis, we don’t have enough and this VAT rate will curb it,” he said.
“It will turn hairdressing into a black economy and increase job losses,” he said.
The protest was organised by the hairdressing council of Ireland. Sean Taaffe has salons in Killarney, Tralee and Killorglin. TD’s and Ministers were invited to attend the protest and hairdressers expressed disappointment at the lack of support from them.
Deputy Michael Healy Rae, who voted against the VAT increase, was in attendance and apologised to hairdressers for the decision which he says has put them in a ‘ hard spot’.
“They should have done something more sensible. The one thing that is lacking in Government is people who have a knowledge and understanding of what it means to run a small business. I know this is hurtful to each and everyone of you.”
He said that the Government are “shutting down small business” and that the Vat rate is a ‘ hammer-blow’ to them.
Deputy Danny Healy Rae also attended Tuesday’s protest to offer his support to hairdressers across the country and he said that the VAT rate would lead to the closure of hairdressing businesses in rural villages.