The Government of Punjab has officially announced a complete waiver of stamp duty on property transfers arising from mergers and schemes of arrangement approved by the courts or the Securities and Exchange Commission of Pakistan (SECP).
The notification comes in line with the Companies Act, 2017, and follows a landmark judgment by the Lahore High Court (Rawalpindi Bench), reported as 2025 CLD 587, delivered by Justice Jawad Hassan and Justice Malik Javid Iqbal Wains. The Court had examined whether the Punjab Government could levy stamp duty on merger schemes sanctioned by the Courts or the SECP.
During proceedings, the SECP highlighted that under Section 282(5) of the Companies Act, 2017, companies with registered offices in the Islamabad Capital Territory are exempt from stamp duty on property transfers arising from court- or SECP-approved mergers. However, the provision required provincial notification to apply in Punjab.
Following Court guidance, the Chief Secretary Punjab and the SECP consulted on the matter, leading to the issuance of the notification granting the exemption.
This move addresses long-standing challenges faced by companies in Punjab undertaking restructuring and mergers, as company law is federal while stamp duty is provincial, creating operational hurdles. The exemption is expected to reduce costs, promote corporate restructuring, encourage investment, and support business growth in the province.
The SECP has welcomed the Punjab Government’s decision, describing it as a significant step toward facilitating the corporate sector, while appreciating the Court’s proactive role in resolving the issue promptly.