Today, February 21, 2026, the Government of Punjab officially notified a complete waiver of stamp duty on specific property transfers. This waiver applies strictly to transfers arising from corporate mergers and schemes of arrangement. However, these restructuring schemes must secure approval from the Courts or the Securities and Exchange Commission of Pakistan (SECP). The provincial government issued this notification following the provisions outlined in the Companies Act, 2017.
This major notification follows a significant judgment by the Lahore High Court (Rawalpindi Bench). Honourable Justice Jawad Hassan and Justice Malik Javid Iqbal Wains delivered the ruling, officially reported as 2025 CLD 587. Consequently, the court actively examined whether the Punjab Government actually possessed the authority to levy stamp duty on these sanctioned merger schemes.
During the hearings, the SECP informed the Court about Section 282(5) of the Companies Act, 2017. Under this specific section, companies registered in the Islamabad Capital Territory already enjoy an exemption from this stamp duty. Nevertheless, this federal provision requires provincial governments to issue a notification or pass legislation to become applicable within their specific jurisdictions. Therefore, the Court directly ordered the Chief Secretary of Punjab and the SECP to consult and resolve the matter.
Historically, company law operates as a federal subject. Meanwhile, stamp duty falls under provincial jurisdiction. As a result, this legal overlap previously created severe practical difficulties for companies attempting to restructure and merge within Punjab. Following a series of vital meetings and deliberations, the Punjab Government successfully bridged this gap by issuing the final exemption notification.
This complete waiver will undeniably facilitate corporate transactions. Furthermore, it will drastically reduce restructuring costs for businesses. Ultimately, the government expects this decision to support corporate investment and aggressively drive business growth across the province.
The SECP enthusiastically welcomed the Government of Punjab’s decision. They termed it a massive, positive step toward facilitating the corporate sector. Moreover, the Commission openly appreciated the Court’s proactive role in guiding all stakeholders toward a timely and effective resolution.