Business

Customs Duty Cut Could Ease Costs for Beauty Industry Imports

The Pakistani government is reviewing potential reductions in customs duties on imported goods essential to the beauty parlour, skincare, and health club sectors. These proposed changes are part of the preparations for the upcoming Budget 2026-27 and aim to provide tax relief to these industries by lowering import costs.

According to sources within the Federal Board of Revenue (FBR), the existing customs notifications 1151 and 1152 could be amended to decrease duties by an additional 2 to 5 percent on various imported items used by personal care businesses. This includes equipment, machinery, raw materials, and consumer products commonly utilized by beauty salons, skincare clinics, and health clubs.

Under the proposed measures, the customs duty on imported makeup products could decrease from the current rate of 44 percent to 40 percent. Similarly, raw materials used for beauty parlours might also benefit from a comparable reduction. Sunscreen and sunblock products imported for use in these salons are expected to see the same reduction in duty rates.

Hair care product raw materials and men’s grooming items such as shaving creams and aftershave lotions are also likely to receive customs duty cuts. The current duty levels of 40 percent for men’s grooming products may be reduced to 35 percent.

Moreover, imported raw materials used in face washes, soaps, skincare creams, lotions, and facial polishing products—integral items in beauty and skincare treatments—may similarly have their import duties lowered from 40 percent to 35 percent.

Industry stakeholders have welcomed the proposed relief measures, noting that a reduction in import duties would help decrease operational costs for beauty parlours and health clubs. This could also enhance the availability and variety of products and equipment accessible to these businesses.

As of now, these proposed tax breaks have not been officially confirmed and will depend on the final government approval during the budget announcement. The tax relief is part of a wider review of tariff adjustments across multiple sectors intended to stimulate business activities and lessen the financial burden on consumers.

The federal government’s consideration to ease customs duties on beauty and personal care imports reflects its acknowledgment of the economic challenges faced by these industries and a strategic move to support their growth in the upcoming fiscal year.

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