ISLAMABAD, Pakistan – Web Desk: Pakistan’s newly passed federal budget for the fiscal year 2026-27 has officially come into effect, bringing significant tax relief for lower-income earners and a substantial reduction in duties on imported beauty and personal care products.
The government has maintained the existing tax rate on annual incomes up to 2.2 million rupees while abolishing the super tax entirely for individuals and entities earning less than 500 million rupees annually.
Previously, a sliding super tax ranging from 1 to 7.5 percent applied to incomes above 500 million rupees. Under the new finance bill, this levy has been scrapped for that bracket. However, individuals and companies earning over 500 million rupees will now face an 8 percent super tax, a decrease from the previous 10 percent rate. Despite this relief, a 10 percent super tax remains intact for select high-earning sectors, including banking institutions, oil and gas exploration companies, and fertilizer sales operations, which continue to fall under the highest tax bracket.
In a parallel development aimed at providing consumer relief, the Federal Board of Revenue (FBR) has slashed additional customs and regulatory duties by 2 to 5 percent on a wide range of imported beauty and personal care items. According to official sources, products benefiting from these duty reductions include imported makeup kits, face powder, face shiners, lipsticks, lip gloss, makeup base creams, eyeliners, mascaras, perfumes, body sprays, lotions, face washes, moisturizing creams, hair colors, hair lotions, hair-removal creams, imported artificial eyelashes and wigs, as well as hair straightening and curling devices. The move is expected to lower retail prices, providing financial relief to consumers while encouraging formal trade channels.
