Punjab Beauty Parlor Tax Relief Boosts Small Businesses

09/10/2025

By Muhammad Saleem

The Punjab government’s recent decision to stop taxing beauty parlors has been welcomed as a big relief for small businesses and a potential boost to the local economy. 

Salon owners, entrepreneurs, and suppliers believe this move will ease financial pressure, encourage investment, and create jobs in a sector that supports thousands of livelihoods.

The decision was made in a recent Punjab cabinet meeting chaired by Chief Minister Maryam Nawaz.

Waqar Ahmed, a cosmetics dealer, told this reporter that the government’s move is positive. He said lowering taxes encourages entrepreneurship and helps generate more jobs.

“When people know they won’t face heavy taxes, they can plan for growth. Lower taxes also attract investors, which will create jobs, increase consumer spending, and boost overall economic activity,” he explained.

He added that the service sector, in particular, can grow faster with such policies. Over time, this could lead to more investments and improve Punjab’s economic health

While the announcement focuses on beauty parlors, he said it sets a broader example.

“When the government helps even one group of businesses, it shows that small enterprises matter and won’t be left to face difficulties alone,” Ahmed noted. 

He also said suppliers, training institutes, and other service providers connected to salons would benefit. Over time, other industries might request similar tax breaks, creating positive effects across the province.

Ayesha Jabeen, a salon owner, told this reporter that this decision could make a real difference for small businesses struggling with high inflation

“We need to boost the local economy to create jobs, and taxes have been slowing down business growth,” she said.

She added that businesses need government support and stable policies to thrive. She said the move could be a turning point for entrepreneurship in Punjab.

Salons are major buyers of cosmetic products, and when they face difficulties, related industries struggle too. Ms. Jabeen said, “Believe it or not, multiple taxes are breaking the backs of small business owners. 

These taxes hurt our cash flow, making it harder to hire staff, buy equipment, or improve services.”

She added that salon owners were under stress when they heard taxes might be imposed, but the Punjab CM rejected the plan. “Now we have the chance to invest in our business,” she said.

“We can offer better prices to customers, hire skilled employees, and even expand. It also shows that the government understands the struggles of businesses, which is very encouraging,” she concluded.

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