The Securities and Exchange Commission of Pakistan (SECP) reported that the Government of Punjab has notified a complete waiver of stamp duty on property transfers arising from mergers and schemes of arrangement approved by the courts or the SECP under the Companies Act, 2017. The waiver follows a Lahore High Court (Rawalpindi Bench) judgment (2025 CLD 587) examining whether Punjab could levy stamp duty on merger schemes sanctioned by the courts or the SECP. In the proceedings, the SECP highlighted that Section 282(5) of the Companies Act, 2017 exempts companies with registered offices in the Islamabad Capital Territory from stamp duty on such property transfers, but that provincial application requires notification or legislation by the relevant provincial government. After the Court directed the Chief Secretary, Punjab and the SECP to consult, subsequent meetings led to Punjab issuing the exemption notification, addressing practical difficulties created by the overlap between federal company law and provincial stamp duty.
Securites & Exchange Commission of Pakistan 2026-02-21
Securities and Exchange Commission of Pakistan announces Punjab waiver of stamp duty on property transfers under court or SECP-approved merger schemes
The Securities and Exchange Commission of Pakistan (SECP) announced that the Government of Punjab has waived stamp duty on property transfers from mergers and schemes of arrangement approved by courts or the SECP under the Companies Act, 2017. This follows a Lahore High Court judgment clarifying that provincial notification or legislation is needed for such exemptions, which the Punjab government has now issued. The waiver resolves conflicts between federal company law and provincial stamp duty regulations.