Beauty parlours, skincare clinics, gyms to get tax relief in Budget 2026-27

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

Sources said the government is likely to reduce customs duties by an additional 2 to 5% under Customs Notifications 1151 and 1152.

Under the proposed measures, the duty on imported makeup raw materials used by beauty parlours could be reduced from 44% to 40 %. Similarly, duties on other imported raw materials used in beauty parlours may also be lowered from 44 percent to 40 percent.

The duty on imported sunblocks and sunscreens used in beauty and skincare services is also expected to be cut from 44% to 40%. Likewise, duties on imported hair-care raw materials may be reduced from 44 percent to 40 percent.

For men’s salons, duties on imported shaving creams, aftershave lotions, and related creams could be reduced from 40% to 35%.

Sources further said that duties on face washes, soaps, and other related raw materials used in beauty parlours and salons may be lowered from 40 percent to 35 percent.

In addition, duties on creams and lotions used for skincare treatments and facial polishing are likely to be reduced from 40% to 35%.

The government is also considering reducing customs duties on machinery, equipment, and spare parts imported for health clubs, gyms, and slimming centres from 40 percent to 35 percent.

The proposed reductions are expected to be announced as part of the federal budget for the fiscal year 2026-27.

Read More: Fixed tax scheme introduced for small traders before budget 2026-27

Earlier, Finance Minister Muhammad Aurangzeb said that a fixed tax scheme is being introduced for small traders and retailers.

Addressing a joint news conference along with Minister of State for Finance, Bilal Azhar Kayani in Islamabad, the Federal Minister said that the government wants to expand the tax net to reduce the burden on existing taxpayers. The Minister said that Pakistan’s economy remained stable despite last year’s floods and the ongoing Middle East conflict.

He added that Pakistan overcame these challenges using its indigenous resources and did not seek foreign assistance in this regard.

He emphasized that in order to generate revenue, the expansion of the tax net is inevitable.

Outlining details of the scheme, Bilal Azhar Kayani said that the scheme carries a fixed tax rate of one percent, while any withholding tax already deducted will be adjusted against it.