The Government is reducing the VAT rate for food and catering businesses, and for hairdressing services from 13.5% down to 9%.
The measure will come into effect from 1 July next year, and will cost €232m for 2026 and €681m in a full year.
This VAT reduction is in line with a commitiment in the Programme for Government, with Minister for Finance Pachal Donohoe saying it will support more than 150,000 jobs across the country.
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.
