Punjab waives stamp duty on property transfers in corporate mergers

ISLAMABAD: The Punjab government has waived stamp duty on the transfer of property in cases of mergers between companies, in an effort to encourage business restructuring and investment.

The move comes after the Rawalpindi bench of the Lahore High Court ruled in a case, and the Punjab government has now issued a notification in line with the ruling to exempt stamp duty on merger schemes approved by the court and the Securities and Exchange Commission of Pakistan (SECP).

The exemption will now not apply to stamp duty on the transfer of assets, including property, as a result of mergers that are approved by the court and the SECP, and that are conducted under the Companies Act 2017.

In a statement, the SECP welcomed the move, saying it would encourage investment and business activity in the province. The SECP also thanked the court and the Punjab government for removing what it called a major impediment to business reorganization.