Austrian Hairdressers Demand VAT Cuts Amid Master Craftsperson Shortage and Rising Undeclared Work

Austria's hairdressing industry is sounding the alarm over a critical shortage of master craftspeople, prompting calls for substantial value-added tax (VAT) reductions. The sector faces a paradox: while the number of salons is increasing, the workforce is shrinking, with fewer employees and apprentices entering the trade. This decline in skilled labor is exacerbating the problem of undeclared work, which is reportedly on the rise. Hairdressers argue that a lower VAT rate is essential to bring more business into the formal economy and to combat the growing prevalence of ' Schwarzarbeit' (undeclared work). The industry's plea highlights a broader economic challenge, where regulatory burdens and tax structures may be hindering legitimate business growth and contributing to informal labor practices. The call for 'harte Schnitte' (hard cuts) in VAT reflects the urgency and severity of the situation facing Austrian coiffeurs.