Rawalpindi, July 20, 2025 – The Rawalpindi Chamber of Commerce and Industry (RCCI) has strongly criticized the Punjab government’s latest fiscal policies, particularly the imposition of a 16% sales tax on commercial property rent and the controversial inclusion of arrest powers for employers not complying with the new minimum wage law.
In a detailed statement issued on Sunday, RCCI President Usman Shaukat voiced concern over the adverse effects these new policies will have on businesses operating across Punjab. “The 16% tax on commercial property rent will increase operational costs dramatically for tenants, especially for small and medium retailers who are already under economic pressure,” said Shaukat. “This measure will discourage legitimate investment and drive more businesses into the undocumented sector across Punjab.”
He warned that such a tax move would worsen the ongoing slowdown in the property and retail sectors, both of which are still trying to recover from pandemic-induced setbacks. RCCI believes this added financial burden will dampen investor sentiment and weaken the province’s overall business climate.
In addition to the property rent tax, RCCI has taken strong exception to a provision in the recently passed Punjab budget that allows for the arrest of business owners who fail to implement the newly enforced minimum wage of Rs. 40,000. Terming it a “coercive” and “anti-business” step, Shaukat said such powers open the door to possible misuse by enforcement officials, leading to unnecessary harassment of compliant businesses in Punjab.
While the RCCI supports fair wage practices, Shaukat emphasized the importance of aligning wage increases with real-time market conditions. “With inflation currently at a historic low of 6%, the jump to a Rs. 40,000 minimum wage without proper consultation is economically questionable,” he noted. “There needs to be a balanced, evidence-based, and collaborative approach toward economic policymaking.”
The RCCI has urged the Punjab government to reconsider both the sales tax on property rent and the arrest provision. It called for immediate and inclusive dialogue with the business community to ensure that policies foster economic growth, attract investment, and support employment generation across Punjab.