In a recent development, beauty parlors and beauty clinics operating within the jurisdiction of Islamabad Capital Territory (ICT) are now obligated to pay a 15 percent sales tax on services, as per updated laws issued by the Federal Board of Revenue (FBR).
The FBR has introduced revised rates of sales tax on services provided within the ICT region. Under the updated laws, a 15 percent sales tax on services has been imposed on establishments offering personal care services, including beauty parlors, clinics, slimming clinics, body massage centers, and pedicure centers. This also encompasses services related to cosmetic and plastic surgery provided by such parlors and clinics.
However, certain exemptions have been made by the FBR. These exemptions apply to specific categories of services falling under this classification. First, beauty parlors and clinics with an annual turnover not exceeding Rs. 3.6 million are exempt from this sales tax. Additionally, premises that do not have or have not installed air-conditioning facilities are also exempt from this obligation.
The implementation of the sales tax on beauty and personal care services is aimed at broadening the tax base and generating revenue for the government. This move will contribute to the overall tax collection efforts and help in meeting the financial needs of the country.
It is important for beauty parlors, clinics, and other relevant establishments within Islamabad to ensure compliance with the new regulations and fulfill their tax obligations accordingly. Failure to do so may result in penalties or legal consequences.
The imposition of sales tax on beauty services reflects the government’s focus on ensuring a fair and comprehensive taxation system. By expanding the tax net, the authorities aim to create a more equitable environment while providing necessary revenue for essential public services and infrastructure development.