Big relief as Punjab waives stamp duty for property transfers

2026-02-21 - 08:23

LAHORE – The Punjab government has announced a complete waiver of stamp duty on property transfers related to mergers and schemes of arrangement approved by courts or the Securities and Exchange Commission of Pakistan (SECP), in line with the Companies Act of 2017. This decision follows a ruling from the Lahore High Court (Rawalpindi Bench) in 2025, where the court examined whether Punjab could impose stamp duty on property transfers resulting from mergers or schemes sanctioned by the SECP or courts. The SECP clarified that Section 282(5) of the Companies Act, 2017, exempts companies registered in Islamabad from paying stamp duty on such transfers, but this exemption applies to provinces only after notification or legislative action by the respective provincial governments. The court instructed the chief secretary of Punjab and the SECP to discuss the matter, leading to a series of consultations. As a result, the Punjab Government issued a notification that grants an exemption from stamp duty for these specific property transfers. This move is seen as a solution to the challenges faced by companies undergoing restructuring or mergers in Punjab, where company law is a federal issue, while stamp duty falls under provincial jurisdiction. The exemption is expected to simplify such transactions, lower costs, and promote corporate restructuring, investment, and business development in the region. The SECP has appreciated the Punjab Government’s decision, calling it a step forward in easing the process for businesses.