Muhammad Saleem

A recent decision by the Punjab government to stop taxing beauty parlors has been welcomed as a lifeline for small businesses and a potential boost to the local economy. Entrepreneurs, salon owners, and suppliers believe the move will ease financial pressure, encourage investment, and create jobs in a sector that supports thousands of livelihoods.

The decision to halt taxes for beauty salons was taken in a recent Punjab cabinet meeting chaired by Punjab Chief Minister Maryam Nawaz. Waqar Ahmed, a cosmetic dealer, while talking to Wealth Pakistan, termed the Punjab government’s move as positive. He said that reducing taxes on businesses encourages entrepreneurship and helps generate more jobs.

“When people know that they won’t be heavily taxed, they can develop growth strategies. Lower taxes also attract the attention of investors, which will ultimately create jobs, increase consumer spending, and boost overall economic activity,” he noted. He said that the service sector, in particular, can grow faster with such policies and with the passage of time, this can lead to more investments and improve the province’s economic health. The Punjab government’s announcement apparently focuses on beauty parlors, but it sets a broader example.

He said that when the government helps out even one segment of businesses, it shows that small enterprises matter and won’t be left to face difficulties alone. He also pointed out that this decision would also help suppliers, training institutes, and service providers connected to beauty salons to thrive. Over time, it might encourage other industries to ask for similar tax breaks, creating a positive effect across the province, he added.

Ayesha Jabeen, a salon owner, told Wealth Pakistan that this decision could have a meaningful impact on small businesses, which were already struggling due to high inflation. She said, “we need to boost the local economy to generate jobs and imposition of taxes is hindering the growth of businesses.” She added that businesses need government support and steady policies for growth. She said that this approach could be a turning point for entrepreneurship in Punjab.

Salons are major consumers of cosmetic products, and when they face difficulties, it becomes impossible for the allied industries to thrive. Ms. Jabeen said, “Believe it or not, multiple taxes are breaking the backs of the people of Pakistan. Such taxes have always been one of the biggest challenges for small businesses to remain afloat. These taxes are negatively hitting our cash flow, leaving us in a difficult situation when it comes to hiring staff, buying equipment, or improving our services.”

“For a couple of weeks, the salon owners were under tremendous pressure after being informed that the provincial government was going to impose taxes on them. However, the Punjab CM has categorically rejected this decision, providing us with opportunities to invest in our business,” she said. “We can now offer better prices to customers, hire more skilled employees, and even go for expansion. It also sends a message that the government is aware of the struggles faced by businesses, which is very encouraging,” she added.

Credit: INP-WealthPk