The federal government is considering major tax relief measures for beauty salons, skincare clinics, and health clubs in the upcoming Budget 2026–27, according to official sources.
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Officials say the proposed reforms aim to reduce the financial burden on service-based businesses that rely heavily on imported raw materials and equipment. The measures are expected to be announced as part of customs duty revisions under relevant notifications.
Under the proposed plan, customs duties on several imported items used in the beauty and personal care industry may be reduced by 2% to 5%. This includes raw materials for makeup products, skincare treatments, and hair-care services used in salons and clinics.
For beauty parlours, duties on imported cosmetics and related materials could be reduced from 44% to 40%. Similar reductions are also being considered for sunblocks, sunscreens, and hair-care ingredients.
In men’s grooming services, including barbershops and salons, the government is reviewing a possible reduction in duties on shaving creams, aftershave lotions, and related products from 40% to 35%.
Authorities are also considering lowering tariffs on face washes, soaps, and skincare products used in salons and cosmetic treatments. Equipment and machinery used in health clubs, gyms, and slimming centres may also see reduced import duties under the proposed budget plan.
The changes are aimed at encouraging investment in the personal care and wellness sector, which has expanded rapidly in urban areas over recent years. Industry stakeholders have long argued that high import duties increase operating costs and limit service affordability for consumers.
The proposed relief measures are expected to be finalized and presented in the federal budget for the fiscal year 2026–27. Officials say the broader objective is to support small and medium enterprises while expanding economic activity in the services sector.
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Earlier, the finance ministry indicated that broader tax reforms are also underway, including a fixed tax scheme for small traders and efforts to expand the tax net to improve revenue collection without increasing pressure on existing taxpayers.