A hairdresser in the city centre says businesses are already doing everything they can to reduce their costs and says the return of the 13.5 per cent VAT rate will be very difficult for some.
The VAT rate for the hospitality and tourism sector including hairdressers increased today after over two and a half years.
Industry groups including the Restaurants Association of Ireland and the Irish Hotels Federation have voiced concern and opposition to the reintroduction of the higher rate.
However Finance Minister Michael McGrath says the rate was always intended to be a temporary measure during the pandemic and the cost of living crisis.
Speaking to RedFM News, Ciara Dorrington from Kida Hair and Co. on Washington Street says a VAT increase is the last thing they need now:
"So you can't cut down on anything and the energy alone has been a massive effect on us. We've actually changed our opening hours as an effect. So we actually only open four days a week. What we do is even though we have a full team, we've no staffing issues. Thank God. I know a lot of places are struggling with staff at the moment. We're very lucky with the team we have. But we're open four days and we're doing longer days so that we're not opened the extra day to try and reduce energy price just a little bit."
