UBG Patron S.M. Tanveer Slams 16% Sales Tax on Commercial Property Rentals in Punjab

LAHORE:  S.M. Tanveer, Patron-in-Chief of the United Business Group (UBG), has voiced serious concern over the Punjab government’s recent decision to impose a 16% sales tax on the rental of commercial properties, warning that the move will increase business costs and deter investment at a critical time for the economy.

Calling the tax “economically flawed and legally questionable,” Tanveer criticized the lack of consultation with stakeholders and cautioned that the sudden implementation would create both legal complications and administrative hurdles.

“This tax makes renting commercial space in Punjab prohibitively expensive,” he said. “It adds an unsustainable burden on already struggling retailers and entrepreneurs, and could push many into the informal economy.”

Tanveer warned that the decision sends a negative signal to both local and foreign investors, suggesting that the cost and risk of doing business in Punjab are rising unpredictably. He stressed that such tax policies—introduced without proper analysis—could shrink the formal retail sector, result in job losses, and erode business confidence.

He added that the government’s approach contradicts its own goals of economic revival, export growth, and tax base expansion through inclusive and transparent policies.

Tanveer urged the government to revisit the decision, calling for more business-friendly reforms that encourage investment, economic stability, and long-term resilience.