The Punjab Government has made amendments to the Punjab Shops and Commercial Establishments Act, 1958 to remove the difficulties faced by small traders while doing business. These amendments will soon take the form of a law.
The Punjab Government has made important amendments to the Punjab Shops and Commercial Establishments Act, 1958 to provide relief to small shopkeepers after a long period of 67 years since the law was made. These amendments to the law are part of the Punjab Shops and Commercial Establishments Amendment Bill passed in the special session of the Vidhan Sabha on July 11, 2025. This bill was passed without any opposition shortly after being introduced during the proceedings of the House.
Giving detailed information about the bill, Punjab Finance Minister Daljit Singh Cheema said that the proposal for amendments to this bill was pending for a long time. When the Punjab Government placed it before the house during this session of the Vidhan Sabha, the house accepted it without any debate.
After which, the bill will soon be sent to Governor Gulab Chand Kataria after which these amendments will become law.
The main amendments made in the law include:
● Exemption of the Act on establishments with less than 20 employees: Now this act will not be applicable to shops and commercial establishments with less than 20 employees. This will reduce the burden of compliance of rules on small shopkeepers and they will get relief from “inspector raj”.
● Increase in overtime limit: The overtime limit of employees has also been increased, which will give more flexibility to employees and facilitate small traders in running their business.
● Ease of doing business: These amendments have been made with the aim of promoting ease of doing business and reducing the burden of rules on small businesses. Punjab Labour Minister Tarunpreet Singh Saund called it a progressive step for small traders.
● Tax and loan facilities: Earlier on June 4, 2025, the cabinet meeting chaired by Chief Minister Bhagwant Mann considered tax relief and subsidized loan schemes for small traders. The plan also included tax exemption and license fee relief for traders with an annual turnover of up to Rs 30 lakh.
● Formation of a board for traders: Aam Aadmi Party chief Arvind Kejriwal had announced on May 25, 2025 that a board for traders would be formed in every district of Punjab, which would take up their problems with the government and provide security and respect.
Regarding this decision, Chief Minister Bhagwant Mann said that these amendments are a big step towards strengthening the important role of small traders in the economy of Punjab and making them self-reliant. The Chief Minister has said that these decisions will strengthen the economic backbone of the state.