The Government is cutting the VAT rate for the food, catering, and hairdressing sectors from the current 13.5% to 9%, reports RTE.
This change will take effect from 1 July next year, with a projected cost of €232 million in 2026 and €681 million annually once fully implemented.
The VAT cut follows through on a promise made in the Programme for Government. Finance Minister Paschal Donohoe said the move will help sustain over 150,000 jobs nationwide.
The Irish Hairdressers Federation (IHF) welcomed the move. Spokesperson Lisa Eccles said: “We welcome the Minister’s commitment to reducing VAT within the hairdressing industry to 9%, which is indeed good news for our sector. However, this decision comes with a strong sting in the tail, as the measure will not take effect until July. Many politicians assured us during our meetings in the run-up to the Budget that this VAT change would become a reality, and while it is, the delay leaves our members in a precarious position. There are 267 days between now and July, and I fear for our members’ futures,” she said, reports RTE.
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