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Hundreds of hairdressers protested outside the Dail yesterday against the Budget VAT hike which they claim could put many of them out of business.

Stylists from all over the country descended on Leinster House to show their anger at the VAT increase which jumped from 9% to 13.5% for the hospitality sector.

Those involved in the trade are outraged they are being lumped in with multinational hotels and big restaurants which are booming.

The hairdressers claim the increase is too much for the industry to bare and maintain it will drive customers to use black market operators who can offer cheaper prices.

Irish Hairdressers Federation president and House of Colour hair group founder Peter Campbell says the hike could add anything from €2 to €10 to the price of a visit to a salon.

He told RTE’s Drivetime: “We’re here to stop the 13.5% VAT rate. It’s a 4.5% increase and the businesses can’t sustain it. We are only feeling the grassroots now of the economy coming back.

(Image: Collins)

“The hotels and the restaurants are all booming, we’re not and we are struggling to keep our salons going and this won’t help. This will drive the industry into the black market.

“Our major problem is we’re trying to compete with the black market that’s rampant at the moment in the hairdressing industry.

“This price increase will ultimately be passed on to consumers and is going to drive them towards the black market as well which will jeopardise jobs in the industry.” It has also emerged many workers are paid on a commission basis so they will also be hit with a huge reduction in their pay.

Former IHF president Aidan Fitzgerald claimed the industry has been abandoned by the Government.

He said: “The Government has increased in the VAT rate from 9.5% to 13.5%.

(Image: Collins)

“We employ thousands of people, we do not get support from the Government. Tourism gets €35million, we don’t get anything.

“It’s a soft tax on services and it’s the people who are going to pay, it’s not us, we’re going to have to pass it on to customers. It’s going to drive hairdressing into the black economy and out of the business.

“We need the support of the Government. We need the 9% VAT.