Economic crisis in France: hair salons ask for a reduction in VAT

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Hair salons’ turnover was even more affected than the hotel and restaurants sector in France.

Customers have not yet returned to the hair salons, where a drop in traffic of up to 40% has been recorded. Worrying for the future of an entire profession, the National Union of Hairdressing Companies (UNEC) has asked the government to reduce their VAT from 20 to 10%, in a press release published on Wednesday, September 2nd.

“To keep up the activity, the sustainability of companies, jobs and support the training effort of young people by our companies, we ask the government that the VAT rate for hairdressing services be lowered to 10%,” said the president of UNEC, Christophe Doré, quoted in this press release. For hairdressers, VAT has been fixed at 20% for the whole service since October 2001.

Hair salons more affected than the restaurants

“The entire sector is struggling today,” added Christophe Doré. “We are seeing a 15 to 40% drop in consumption, which we fear could be long-lasting and the consequences of the economic shock suffered by our country.” After the much-awaited reopening of the salons on May 11th, the activity did not stay stable, underlined Christophe Doré. “Our sector is now anxious.”

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According to figures from the Federation of Approved Management Centres (FCGA), the sector’s turnover will be even harder hit in the first quarter of 2020 than that of the hotels and restaurants segment.

An online petition posted last month by the organisation, which represents 96 departmental unions, was signed by thousands of people. Hairdressing, the second craft sector in France, brings together over 85,000 establishments and 184,000 workers (employees and self-employed).


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