LCCI Welcomes Punjab Government’s Withdrawal of 16% Sales Tax on Rental Income

By Our Staff Reporter Muhammad Shahzad
Lahore: The Lahore Chamber of Commerce and Industry (LCCI) has lauded the Government of Punjab for withdrawing the 16% Sales Tax on commercial property rent previously imposed by the Punjab Revenue Authority (PRA). The reversal marks a significant relief for the business community and underscores the impact of constructive dialogue between the private sector and the provincial administration.

The decision follows consistent advocacy by the LCCI, which had voiced strong concerns about the adverse economic effects of the tax. LCCI President Faheem Ur Rehman Saigol, along with Senior Vice President Tanveer Ahmed Sheikh and Vice President Khurram Lodhi, had urged the Punjab government to reconsider the levy, warning that it would further strain the already burdened retail and commercial sectors.

In formal communication with Punjab’s Minister for Finance, Mian Mujtaba Shuja ur Rehman, the LCCI leadership highlighted that the abrupt imposition of the 16% sales tax had triggered widespread anxiety among businesses already grappling with inflation, high operational costs, and reduced profit margins.

Following LCCI’s sustained engagement with the authorities, the provincial government has now withdrawn the tax — a move that has been widely welcomed across the business community.

LCCI President Faheem Ur Rehman Saigol expressed appreciation for the government’s responsiveness and thanked the Finance Minister for acknowledging the legitimate concerns of the private sector.

> “This decision will provide much-needed relief to the retail and commercial sectors, prevent potential job losses, and support business continuity,” Saigol said. “It is a positive step toward building a more enabling environment for trade and investment in Punjab.”

He reaffirmed LCCI’s commitment to continue working with the government to promote economic stability, business facilitation, and sustainable growth across the province.