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Punjab Waives Stamp Duty on Merger-Related Property Transfers

The move implements a Companies Act exemption requiring provincial approval.

Overview

  • Punjab formally notified a complete waiver of stamp duty on property transfers arising from mergers and schemes of arrangement approved by courts or the SECP.
  • The step follows a 2025 Lahore High Court (Rawalpindi Bench) judgment that examined provincial authority to levy duty on such transactions and ordered consultations.
  • During the case, the SECP explained that Section 282(5) of the Companies Act, 2017 provides an exemption that applies in provinces only after their own notification or legislation.
  • Officials describe the change as removing friction between federal company law and provincial stamp duty powers, which had complicated corporate reorganizations in Punjab.
  • The SECP welcomed the notification as a positive facilitation for the corporate sector and acknowledged the High Court’s role in prompting a resolution.