Punjab Removes Stamp Duty on Corporate Property Transfers

The Punjab government has waived stamp duty on property transfers linked to company mergers and restructuring schemes, reducing costs and easing business transactions.

The exemption applies to schemes of arrangement approved by courts or the Securities and Exchange Commission of Pakistan, removing a key financial burden for companies.

The move is expected to support corporate restructuring and encourage investment in the province. The decision follows a Lahore High Court ruling that examined whether stamp duty could be applied to such transactions.

The court directed authorities to resolve the issue, leading to consultations between the Punjab government and the SECP.

Under the new notification, companies undergoing mergers or restructuring will no longer be required to pay stamp duty on property transfers arising from these arrangements.

This aligns Punjab with existing provisions applicable in Islamabad, where such exemptions are already in place. Previously, the overlap between federal company law and provincial taxation created complications for businesses.

While company mergers fall under federal jurisdiction, stamp duty is a provincial matter, leading to inconsistencies in implementation.

Officials said the exemption will simplify legal procedures, reduce transaction costs, and improve ease of doing business.

The move is also expected to encourage corporate consolidation and investment activity. The SECP welcomed the decision, describing it as a positive step for the corporate sector.

Authorities noted that the exemption will help streamline restructuring processes and support long-term business growth in Punjab.