Written answers

Thursday, 29 April 2021

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent)
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28. To ask the Minister for Finance if there are plans to make the 9% VAT rate permanent for the hair and beauty sector; and if he will make a statement on the matter. [22414/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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In recognition of the unprecedented challenges facing the sector, I provided for a reduction in the VAT rate for the hospitality sector, including hairdressing services, in Budget 2021. The rate was reduced from 13.5% to 9% from 1 November 2020 to 31 December 2021. 

Those changes introduced in the context of the pandemic are kept under review by my Department. Separately, tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups. 

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