Govt plans tax relief for beauty parlours and fitness sector in Budget 2026-27

ISLAMABAD: The federal government is planning to give tax relief to beauty parlours, skincare clinics, and health clubs in the upcoming Budget 2026-27, according to sources.

Sources said customs duties may be reduced by 2 to 5 percent under Customs Notifications 1151 and 1152.

Under the proposed plan, duties on imported makeup raw materials used in beauty parlours could be reduced from 44 percent to 40 percent. Similar cuts are also expected on other raw materials used in the beauty industry.

The duty on imported sunblocks and sunscreens may also drop from 44 percent to 40 percent. In addition, duties on imported hair-care materials are likely to be reduced to the same level.

For men’s salons, the government is considering reducing duties on shaving creams, aftershave lotions, and related products from 40 percent to 35 percent.

Sources also said that duties on face washes, soaps, and other salon-related items may be reduced from 40 percent to 35 percent. Skincare products like creams, lotions, and facial polishing items are also expected to get similar relief.

The government is also planning to cut duties on machinery, equipment, and spare parts used in gyms, health clubs, and slimming centres from 40 percent to 35 percent.

These changes are expected to be announced in the federal budget for the fiscal year 2026-27.

Earlier, Finance Minister Muhammad Aurangzeb said the government is introducing a fixed tax scheme for small traders and retailers. He said the goal is to expand the tax net and reduce pressure on existing taxpayers.

He added that Pakistan’s economy remained stable despite floods and regional conflicts, and said the country managed these challenges using its own resources without foreign assistance.

Officials also said the new scheme will have a fixed tax rate of one percent, and any already deducted withholding tax will be adjusted against it.