Major relief as Punjab ends stamp duty on property transfers

LAHORE: The Punjab government has announced that it will not charge stamp duty on property transfers linked to company mergers and schemes of arrangement approved by courts or the Securities and Exchange Commission of Pakistan (SECP). This decision has been made under the Companies Act, 2017.

The move comes after a 2025 decision by the Lahore High Court’s Rawalpindi Bench. The court reviewed whether the Punjab government could collect stamp duty on property transfers that happen because of mergers or restructuring plans approved by courts or the SECP.

The SECP explained that under Section 282(5) of the Companies Act, 2017, companies registered in Islamabad are already exempt from stamp duty on such transfers. However, for this exemption to apply in provinces like Punjab, the provincial government must issue a formal notification or pass a law.

After the court’s instructions, the chief secretary of Punjab and the SECP held discussions on the matter. Following these meetings, the Punjab government issued a notification granting a full exemption from stamp duty on these specific property transfers.

This step is being seen as a big relief for companies going through mergers or restructuring in Punjab. Company law is handled at the federal level, while stamp duty is a provincial matter, which had created confusion and extra costs.

With this exemption, business transactions are expected to become easier and less expensive. It may also encourage more investment, corporate restructuring, and business growth in the province.

The SECP has welcomed the decision and called it a positive step for improving the ease of doing business in Punjab.