ISLAMABAD, Feb 21: The Government of Punjab, in accordance with the provisions of the Companies Act, 2017, has notified the 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).
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The notification follows a judgment of the Lahore High Court (Rawalpindi Bench) reported as 2025 CLD 587, delivered by Honourable Justice Jawad Hassan and Justice Malik Javid Iqbal Wains. The case examined whether the Punjab Government could levy stamp duty on merger schemes sanctioned by the Courts or the SECP.
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During the proceedings, the SECP informed the Court 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 mergers or schemes of arrangement approved by the Court or the SECP. However, this provision becomes applicable in provinces only after notification or legislation by the respective provincial governments.
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The Court directed the Chief Secretary, Punjab, and the SECP to consult on the matter. Following a series of meetings and deliberations, the Punjab Government issued the notification granting exemption from stamp duty on property transfers arising from mergers or schemes of arrangement approved by the Court or the SECP.
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As company law is a federal subject while stamp duty falls within provincial jurisdiction, this overlap had created practical difficulties for companies undertaking restructuring and mergers in Punjab. The exemption is expected to facilitate such transactions, reduce costs, and support corporate restructuring, investment, and business growth in the province.
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The SECP has welcomed the Government of Punjab’s decision, terming it a positive step toward facilitating the corporate sector. The Commission also appreciated the Court’s proactive role in guiding stakeholders toward a timely resolution of the issue.
