9% VAT rate for hairdressers
Deputy O'Sullivan urged retention of the 9% VAT rate for hairdressers, especially in west Cork, and others joked about competing claims on the best wedding capital. The Taoiseach said the rate would rise to 13.5% at the end of February but Government would consider which cost-of-living measures could be extended.
I want to bring awareness to the campaign by hairdressers throughout the length and breadth of Ireland to keep the VAT rate for their services at 9%. It is an issue nationally. If one looks at west Cork, one sees a perfect example of how a change in the VAT rate will negatively impact the industry. There is a healthy number of excellent hairdressers throughout west Cork and they play such an important role. As the Taoiseach may well know, west Cork is the wedding capital of Ireland and hairdressers play such an important part in that whole package. Unfortunately, an increase in VAT will impact the viability of these hairdressers. It is also safe to say we all want more affordable haircuts. It is something that should be revisited.
Comment on this
I was not going to say that.
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I thank the Deputy. I was not aware that west Cork was the wedding capital of Ireland but if that is the case, I am willing to accept it.
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I imagine Deputies from Kerry, Dublin and other areas might have a different view on that. As the Deputy will be aware, the Government has decided that the concessional VAT rate of 9% will go back up to 13.5% at the end of February. That was a cost-of-living measure. However, we will have to make some decisions at Government level in the next week or two on what measures we might be able to extend. We cannot extend them all but we will try to extend some of them.