Govt considers tax relief for beauty, skincare and fitness industries

Tax on skincare, makeup products likely to drop in Budget 2026-27

The federal government is considering providing tax relief to Pakistan’s beauty, skincare, wellness, and fitness sectors as part of its efforts to support businesses and encourage economic growth.

However, the proposal is currently under discussion ahead of the upcoming federal budget, with industry representatives urging authorities to reduce the tax burden on businesses operating in these fields.

According to reports, stakeholders from the beauty and fitness industries have requested reductions in existing taxes, arguing that high taxation has increased operating costs and limited growth opportunities. Business owners state that lowering taxes would help the sectors expand, attract more customers, create employment opportunities, and encourage greater investment.

Moreover, representatives of beauty salons, skincare centres, gyms, and wellness businesses have informed policymakers that the industries contribute significantly to the economy by providing services to a large segment of the population.

They argue that excessive taxation has placed financial pressure on businesses. The pressure is particularly more evident on smaller enterprises that face rising operational expenses, including rent, utilities, equipment costs, and employee wages.

Industry leaders have proposed a reduction in sales tax and other applicable levies, stating that lower taxes would make services more affordable for consumers. They believe that a decrease in tax rates could encourage more people to use professional beauty, skincare, and fitness services, ultimately benefiting both businesses and government revenue through increased economic activity.

The discussions are taking place as the government reviews various taxation measures before finalising budget proposals. Officials are reportedly examining recommendations from different sectors to determine where adjustments may be appropriate.

Business owners have emphasised that the fitness industry, including gyms and health clubs play an important role in promoting public health and encouraging healthier lifestyles.

Similarly, the beauty and skincare sector provides employment to thousands of professionals, including beauticians, therapists, trainers, and support staff.

While no final decision has yet been announced, the proposal for tax reductions is being considered as part of broader budget discussions. Any approved measures would likely be included in the upcoming federal budget and could provide financial relief to businesses operating within the beauty, skincare, wellness, and fitness industries.

Stakeholders remain hopeful that the government will introduce favourable policies aimed at strengthening these sectors in the coming fiscal year.

Also read: Punjab proposes interest-free e-bike, e-taxi scheme in 2026-27 budget