Islamabad: The federal government is considering substantial tax relief for beauty parlours, skincare clinics, salons, gyms, and health clubs in the upcoming Budget 2026-27 as part of efforts to support service-sector businesses and lower operating costs.
According to Beyond Time News, authorities are reviewing proposals to reduce customs duties on various imported beauty products, skincare ingredients, and fitness equipment under Customs Notifications 1151 and 1152.
Proposed Duty Cuts for Beauty and Skincare Industry
Sources said the government may reduce customs duties on imported makeup raw materials from 44% to 40%.
Similarly, other imported ingredients commonly used by beauty parlours could also benefit from lower duties. The proposed reduction aims to make beauty and skincare services more affordable while supporting business growth.
Authorities are also considering reducing duties on imported sunblocks and sunscreens from 44% to 40%. In addition, imported hair-care materials used in salons may receive similar tax relief.
Industry stakeholders believe these measures could lower business expenses and improve access to quality products.
Relief Expected for Men’s Grooming Products
The proposed budget may also bring tax relief for products commonly used in men’s salons and barbershops.
Under the proposal, customs duties on imported shaving creams, aftershave lotions, and related grooming products could fall from 40% to 35%.
Likewise, duties on face washes, soaps, and other salon-related materials may also decrease from 40% to 35%.
Business owners say such reductions could help stabilize service costs and improve profitability.
Read more:Pakistan Urged to Unlock Blue Economy Potential in Upcoming Budget 2026–27
Skincare Treatment Products May Become Cheaper
The government is also evaluating duty reductions on creams, lotions, and products used in facial treatments and skin-polishing procedures.
If approved, customs duties on these items could drop from 40% to 35%.
Experts say the move could encourage investment in Pakistan’s growing beauty and wellness sector while reducing the cost of imported skincare supplies.
Fitness Industry Set to Benefit
Health clubs, gyms, and slimming centres may also receive support through reduced import duties on machinery and equipment.
According to sources, customs duties on imported fitness equipment, spare parts, and related machinery could be lowered from 40% to 35%.
The proposed measure aims to help gym operators upgrade facilities at lower costs and encourage investment in the country’s fitness industry.
Budget Announcement Expected Soon
The government is expected to unveil these proposals during the presentation of the Federal Budget 2026-27.
While officials have not yet confirmed the final measures, industry representatives remain hopeful that the proposed tax reductions will receive approval.
Government Focuses on Broadening Tax Base
The development comes as the government explores broader fiscal reforms ahead of the new budget.
Earlier, Finance Minister Muhammad Aurangzeb announced plans to introduce a fixed tax scheme for small traders and retailers.
He said expanding the tax net remains essential for increasing revenue and reducing pressure on existing taxpayers.
The minister also noted that Pakistan’s economy remained stable despite recent economic challenges and regional uncertainties.
Fixed Tax Scheme for Small Businesses
Minister of State for Finance Bilal Azhar Kayani said the proposed scheme would impose a fixed tax rate of one percent on eligible traders.
He added that any withholding tax already deducted would be adjusted against the fixed tax liability.
Officials believe the initiative will encourage greater documentation of businesses and improve tax compliance across the country.
Conclusion
The proposed Budget 2026-27 could provide meaningful relief to beauty parlours, skincare clinics, salons, gyms, and health clubs through lower customs duties on imported products and equipment.
If approved, the measures may reduce operating costs, encourage investment, and support growth in Pakistan’s beauty, wellness, and fitness sectors while complementing the government’s broader economic reform agenda.
FAQs
Which sectors may receive tax relief in Budget 2026-27?
Beauty parlours, skincare clinics, salons, gyms, health clubs, and slimming centres are expected to benefit.
What duty reduction is proposed for beauty products?
Customs duties on several imported beauty and skincare materials may decrease from 44% to 40%.
Will gyms receive any tax benefits?
Yes. The government is considering reducing duties on imported gym equipment and machinery from 40% to 35%.
What is the proposed fixed tax scheme?
The government plans to introduce a one percent fixed tax scheme for small traders and retailers.
When will the budget be announced?
The Federal Budget 2026-27 is expected to be presented in the coming days.
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