“I have had a salon for 11 years in which we were 5 people working and now we are 2. We are suffering a lot since in 2012 they raised the VAT from 8% to 21%. They told us it was something temporary, but in 2021 we are still in the general type “, explains Jessica Gallardo, owner of a hairdresser in Tona (Barcelona).
So, the sector defends that the increase no impact on customers because there was an economic crisis and now it cannot do it either for the same reason, and that is coronavirus pandemic has been the icing on the cake. “Before I had weekly clients that have become fortnightly and those that I had every fifteen days now come once a month or out of fear or because they no longer leave so much. If they returned our VAT (reduced rate) everything would be easier,” he adds .
Gallardo has been one of those around fifty personal image professionals who have gathered this Wednesday in front of the Congress of Deputies to demand the VAT reduction of the general type hairdressers and beauty centers, from 21%, to the reduced 10%, after the president of the Senate, Pilar Llop, annulled on Friday an amendment in which all political groups , with the exception of the PSOE, they had approved this reduction from 2022.
In 2012, the Government of Mariano Rajoy raised the VAT of hairdressers and beauty centers to 21% and, since then, no one has daring to correct this situation. Despite the fact that the PSOE in 2018 when I was in the opposition He proposed a reduction, the same as the Popular Party does now, but none of them have been able to carry out the change when they are in government. “It is not about them taking it down just because, but because they owe it to us, because they promised us and because we are essential. We need to be taken into account a little,” says Ermitas Silva, owner of a salon in Santiago de Compostela.
In your case, it also had more employees in 2012 than it does now, specifically three, now he only has one. The first, he fired after the VAT increase then, and the second, in January, six months after removing it from the temporary employment regulation file (ERTE). “I had to compensate her, but what am I going to do, after 11 years it was difficult because in this sector you create a friendship, but she understood because there was no other,” Silva admits.
That is precisely what Cristina Díaz tries to avoid in her hairdresser in Legazpi (Madrid). “Lowering VAT would mean not having to fire an employee, being able to cover the rent, being able to cover orders, being able to pay for electricityWhat for them (politicians) are pesetas for us is a salary, a wage, “he denounces.” In the end, many people leave the profession because it does not pay to work in this. If we are essential we are for everything, “he adds.
In addition, the sector denounces that a high VAT causes a transfer of professionals to the underground economy. Specifically, according to the ‘Alliance for the Lowering of VAT to 10% to hairdressers and beauty centers’ 20% of the turnover the sector has gone to the underground economy since the VAT increase in 2012. “Your electricity goes up, your rent goes up and you lack customers, so what you do is close because you do not get the accounts and you say, I’ll fix myself as I can”, Explains the president of the National Federation of Aesthetics Associations (Fanae), Rosa María Cruz. “But whoever closes a center has to eat, so he goes to a house or another place to do the same work, but without any contract or Social Security. What happens is that the person who pays and has an aesthetic center has fewer clients, because many have gone to the underground economy, “adds Cruz.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.