The personal imaging industry, which includes hairdressers, beauty salons and barbershops, is demanding that the 10% reduced VAT refund for its sector become part of the investiture deals to form a new government. All factions except the PSOE supported the sales tax cut for barbers in the Senate, although the government corrected it in Congress and these centers, declared non-profit in the pandemic, continue to pay the maximum sales tax rate of 21% as if it were one other luxury item or product.
According to a study published by Allianz on reducing VAT to 10% for hairdressers and beauty salons, 52.92% of small businesses in the personal image sector have not yet recovered from the complex situation resulting from the pandemic and say that their economic situation has improved sei is “bad” or “very bad”.
In addition, the organization points out that payrolls will fall by 2.44% in 2023 after a 10.07% drop in the previous year and a 40.1% drop in income since 2019.
For barbers, expenses are skyrocketing while prices are increasing to a lesser extent
A problem that would be exacerbated by the 27.7% increase in spending, which does not cover the 3.63% price increase at hairdressers, barbershops and beauty salons.
This is a repeated demand from the industry since the VAT reduction for this type of business was abolished in 2012, leading to several years of struggle by personal image actors.
Specifically, the alliance for reducing VAT to 10% for hairdressers and beauticians has called for more than 450 protests in the last three years.