Pine tar in itself is not bad. http://en.wikipedia.org/wiki/Pine_tar
It can be used to treat eczema/psoriasis. I don't think I would use it on someone that young without a really good reason (and after doing a skin test to gauge reactions to it). There are little ones who may be allergic to stuff. Now if she had really bad eczema I may try it instead of giving her prescription creams to treat it, but her hair will grow on its own so I wouldn't try it. But, I just want to note that pine tar in and of itself is not bad.