Budget 2025-26: Pakistan likely to slash taxes on cosmetic items

ISLAMABAD: The Pakistan government is likely to slash import duties on the cosmetic items in the budget 2025-26, ARY News reported on Thursday, citing sources.

Pakistan government is all set to present the budget 2025-26 on June 10 (Tuesday).

As per details, the upcoming federal budget may bring significant relief in the form of reduced duties and taxes on more than 7,000 imported items, including cosmetic items, essential machinery, and raw materials, according to official sources.

As part of the proposed fiscal reforms for the next financial year, regulatory duties on a wide range of imported goods—particularly cosmetics and personal care items—may be reduced by 2 to 5 per cent.

The move comes in response to demands from the International Monetary Fund (IMF) urging Pakistan to ease import-related duties to improve economic efficiency and streamline trade.

Sources reveal that the reduction in import duties could affect a broad spectrum of consumer products. Among the cosmetic items that could see lower taxes are imported lipstick, powder, eyeliner, mascara, makeup kits, face powders, makeup tools, lip gloss, face shiners, base creams, lotions, perfumes, and body sprays.

Additionally, items such as synthetic hair extensions, hair colors, lotions, and creams are also expected to benefit from reduced duty rates between 2 to 5 per cent.

The proposed cuts may also extend to lifestyle and fashion accessories such as branded imported shoes, clothing, belts, purses, sunglasses, briefcases, travel bags, and handbags. Even shaving products are likely to be included in the list of goods eligible for reduced import duties.