ISLAMABAD: In a move that could bring significant relief to consumers and importers alike, the Pakistan government is expected to reduce import duties on cosmetic and lifestyle items in the upcoming federal budget for 2025-26.
The federal budget is scheduled to be presented on June 10 (Tuesday), and among the anticipated fiscal measures is a notable reduction in regulatory duties on over 7,000 imported items, including essential machinery, raw materials, and a wide range of cosmetic and personal care products.
Cosmetic Items to Benefit
According to sources, the government is considering cutting regulatory duties by 2 to 5 percent on numerous beauty and personal care items. These include:
- Lipsticks
- Powders
- Eyeliners
- Mascaras
- Makeup kits
- Face powders
- Lip gloss
- Base creams
- Lotions and face shiners
- Makeup tools
- Perfumes and body sprays
The planned reductions also cover synthetic hair extensions, hair color products, and various skin and hair care creams, making imported beauty products more affordable for consumers.
Broader Tax Relief Across Lifestyle Goods
The proposed tax cuts are not limited to cosmetics. The government is also considering slashing duties on various fashion and lifestyle accessories, such as:
- Branded imported shoes
- Designer clothing
- Belts and purses
- Sunglasses
- Travel bags, handbags, and briefcases
- Shaving and grooming products
These adjustments are being made as part of broader fiscal reforms aimed at simplifying trade, improving economic efficiency, and complying with recommendations from the International Monetary Fund (IMF). The IMF has advised Pakistan to ease import-related duties to stimulate market competition and reduce informal trade barriers.
Economic Impact
Officials believe the reduction in import duties will not only benefit consumers by lowering retail prices, but also encourage legal imports, curb smuggling, and help formalise trade in luxury and non-essential consumer goods. It is also expected to support small and medium-sized enterprises (SMEs) involved in retail and distribution of imported goods.
If approved, the measure could also lead to increased revenue through higher volumes of legal imports, despite lower per-unit tax collections.
While the final details of the budget will be confirmed when Finance Minister Muhammad Aurangzeb presents the financial plan next week, early signals suggest a shift towards a more consumer-friendly and trade-liberal economic framework. Reducing import duties on cosmetics and lifestyle goods reflects the government’s broader strategy to align with global trade practices and improve domestic market competitiveness.
