Business leaders warn new tax and wage policies could stall investment and hurt retail recovery.
RAWALPINDI: July 20, 2025: The Rawalpindi Chamber of Commerce and Industry (RCCI) has called on the Punjab government to urgently review its recent decision to impose a 16% sales tax on commercial rent and grant arrest powers over minimum wage violations.
RCCI President Usman Shaukat expressed deep concern, stating that these measures will increase the cost of doing business, particularly for retailers and small tenants, and may deter investment across the province. He warned that the tax could drive legitimate businesses into the informal economy, weakening an already fragile retail and real estate sector still recovering from post-COVID shocks.
Highlighting the new minimum wage of Rs 40,000, Shaukat criticized the budget clause that allows the arrest of non-compliant business owners, calling it coercive and prone to abuse. While supporting fair wages, he argued that policy must reflect market realities, noting a sharp drop in inflation to 6%.
The RCCI urged the government to engage in dialogue with business stakeholders to revise these policies, thereby preserving industrial confidence and promoting job creation in Punjab.