ISLAMABAD: The federal government is likely to announce a significant reduction in import duties on cosmetic products in the upcoming Budget 2025-26, providing long-awaited relief to consumers and businesses alike, ARY News reported on Thursday, citing official sources.
The move is expected to be unveiled on June 10, when the federal budget will be formally presented.
According to initial details, the government plans to lower regulatory duties on over 7,000 imported items, with cosmetic goods and personal care products among the key beneficiaries.
IMF Push Spurs Import Duty Reform
The potential duty cuts are reportedly in response to recommendations from the International Monetary Fund (IMF), which has advised Pakistan to rationalize its import taxes to improve economic efficiency and promote healthy trade practices.
As per sources, regulatory duties on cosmetic products may be reduced by 2 to 5 per cent, marking a noticeable shift in the country’s fiscal policy toward easing the burden on the average consumer and stimulating the retail and lifestyle sectors.
The relief is expected to cover a wide range of personal care items, including lipsticks, eyeliners, mascaras, face powders, perfumes, body sprays, makeup kits, and grooming tools.
In addition, items such as synthetic hair extensions, lotions, base creams, face shiners, and hair colors may also see lowered tariffs.
Lifestyle Products Also in the Mix
Beyond cosmetics, the proposed reforms could benefit the broader consumer goods market.
Branded fashion accessories, such as imported shoes, belts, sunglasses, handbags, and travel bags, may also enjoy reduced taxes. Shaving products and other personal grooming essentials are expected to be part of the list as well.
These cuts are part of a broader set of fiscal reforms aimed at reviving consumer demand and making essential and lifestyle products more accessible, especially for Pakistan’s urban population.
If implemented, the tax relief could also offer a much-needed boost to the retail, beauty, and fashion sectors, which have faced increasing pressure due to high import costs and inflation.
