The Government of Punjab has officially removed stamp duty on property transfers arising from corporate mergers and restructuring schemes, providing major relief to businesses and investors across the province.
Under the new notification, stamp duty will no longer apply to property transfers executed under schemes of arrangement approved by courts or the Securities and Exchange Commission of Pakistan (SECP). The decision significantly lowers transaction costs and eliminates a long-standing financial hurdle for companies undergoing restructuring.
The development follows proceedings in the Lahore High Court, which examined the applicability of provincial stamp duty on corporate merger transactions. The court directed relevant authorities to address the legal ambiguity, prompting consultations between the provincial government and the SECP.
Previously, businesses faced complications due to overlapping jurisdictions—while corporate mergers are governed under federal company law, stamp duty falls under provincial taxation. This often resulted in inconsistencies and higher compliance costs.
With this exemption, Punjab aligns its policy with Islamabad, where similar relief is already available.
Officials say the move will streamline restructuring procedures, promote corporate consolidation, and improve the ease of doing business. The SECP has welcomed the decision, calling it a positive step toward strengthening the corporate sector and encouraging long-term investment growth in Punjab.
