S. M. Tanveer, patron-in-chief of the United Business Group (UBG), has expressed serious concern over the imposition of a 16% sales tax on commercial property rentals in Punjab.

Calling the move economically unsound and legally indefensible, he warned that the new tax would significantly increase the cost of doing business and further weaken an already fragile investment climate.

In a statement, he emphasised that such a move would lead to serious implementation and legal challenges.

Renting commercial space in Punjab has just become prohibitively expensive, he said, adding that it would place an unsustainable burden on struggling retailers and entrepreneurs in a situation when economic activity is under immense pressure.

H said such punitive measures risk driving legitimate, tax-compliant businesses into the informal sector.

The introduction of a 16% sales tax on rental spaces is not just a financial blow — it is a signal that doing business is becoming increasingly unpredictable and risk-laden, he added.

He emphasised that imposing additional taxes without proper consultation or impact analysis could lead to contraction in the formal retail sector, job losses, and a decline in investor interest, both local and international.

S. M. Tanveer warned that the current approach undermines the government’s stated objectives of economic revival, export enhancement, and broadening the tax base through inclusive policies.

He has urged the government to reconsider this policy in favour of more balanced, transparent, and business-friendly reforms that promote investment, stability, and long-term economic resilience.