Representative bodies for both salons and dining rooms are calling for the VAT rate to remain untouched for the remainder of the year.
TWO REPRESENTATIVE BODIES for hairdressers and restauranteurs have called on the Minister for Finance Michael McGrath to retain the current VAT rate of 9% in a move they would say would help keep their businesses afloat.
Value Added Tax, or VAT, is a tax added on top of any service or product that a consumer purchases, with few exceptions. Now, both groups are campaigning for the rate to be maintained at 9% with President of the Irish Hairdressers Federation Lisa Eccles claiming that an increase, on top of the challenges already faced by the businesses, would make the service “unaffordable” to consumers.
CEO of Restaurants Association of Ireland Adrian Cummins said: “The Irish don’t want consumer taxes to be increased at this time when incomes are under so much pressure.” The most recent Consumer Price Index, released by the Central Statistics Office last week, revealed that prices for restaurants and hotels have increased by 6.6% in the last year – primarily due to increased costs for alcohol, food and hotel accommodation.