Attention all beauty parlors, clinics, fitness centers, and similar businesses in Khyber Pakhtunkhwa! The KPRA has announced new tax rates and exemptions applicable to your services. Here’s what you need to know:
Good News: Most services in the beauty, wellness, and fitness sector now benefit from a reduced tax rate of 5%. This includes:
- Beauty parlors and clinics
- Healthcare centers (excluding cosmetic or plastic surgery)
- Hair transplant centers
- Health clubs and gyms (including yoga centers)
- Physical fitness centers
- Massage centers
- Pedicure/manicure centers
- Swimming pools
- Cosmetic treatment of burns or burned body parts: These treatments are fully exempt from tax.
- Traditional barber shops: As long as they don’t offer high-end beautician or cosmetic services, they are also exempt.
- Consult with a tax advisor to ensure you are applying the correct rate to your specific services.
- Stay updated on any further changes or clarifications from the KPRA.
- This reduced tax rate can offer significant cost savings for your business.
- It encourages formalization and transparency within the industry.
By understanding these new tax implications, you can ensure compliance and potentially benefit from cost savings in your business.