VAT Rate Retained at 9% for Hairdressing and Barbering

HABIC welcomes today’s Government announcement confirming that the VAT rate on Hairdressing and Barbering will remain at 9% for an additional 6 months until August 31^st 2023.

HABIC commissioned leading Irish Economist Jim Power to author a report on “The Economic Case for Preserving the 9% VAT Rate for Hairdressing”.
You can read the full Report here.

HABIC has lobbied Government over the past few months on behalf of the hairdressing and barbering industries including:

• Meeting with Dara Calleary; Minister of State at the Department of Enterprise, Trade, and Employment, and his advisors in February 2023 to discuss many issues that impact the SME community. As Chair of the Irish SME Association (ISME) and CEO of HABIC Margaret O’Rourke Doherty along with ISME CEO Neil McDonnell presented the Minister and his advisors with the Economic Report and outlined the business and economic case for retaining the lower VAT rate.
• Lobbying Michael Mc Grath; Minister for Finance and officials at the Department of Finance and the Department of Enterprise, Trade and Employment.
• Directly lobbying and sending the Economic Report to every TD and Senator in the country in February 2023.
• Lobbying and positively engaging with Jennifer Carroll MacNeil; Minister of State at the Department of Finance, and Paschal Donohue; Minister for Finance in September 2022 to raise the issue in relation to VAT.
• Positively engaging with Senator Barry Ward and Minister for Finance, Paschal Donohue in late October 2022
• Outlining our concerns at the Post-Budget Discussions hosted by the Department of Enterprise, Trade, and Employment.

Changes to the Temporary Business Energy Support Scheme

Also included in today’s cost-of-living package for businesses is a commitment to make it easier for people to apply for the Temporary Business Energy Support Scheme to help with electricity and gas bills.

The TBESS will be extended to 31 May 2023, and enhanced. The enhancements include:

• A reduction in the threshold for qualification from a 50% increase in electricity or gas costs to a 30% increase (to apply retrospectively from 1st September last year)
• From 1st March 2023, the level of relief will increase from 40% to 50% of eligible costs, subject to a monthly limit, which will also be increased from March to €15,000 per month per trade/profession, subject to an overall cap of €45,000 where the business is carried on from more than one location.

There will also be a new grant for businesses using LPG or kerosene as a form of energy.

These changes are subject to state aid approval from the European Commission. The cost of the extended scheme will be met from the allocation provided in Budget 2023.

These are welcome supports which will somewhat ease the burden of increasing costs on businesses over the coming months. HABIC would like to thank all of our members who have helped in lobbying their local TD’s and Senators on these issues.