Lahore: The Government of Punjab has abolished stamp duty on the transfer of property arising from corporate mergers, a move aimed at easing business restructuring and encouraging investment in the province.
The decision follows a ruling by the Rawalpindi bench of the Lahore High Court, after which the provincial government issued a formal notification granting the exemption.
Under the new measure, court-approved merger schemes that also receive clearance from the Securities and Exchange Commission of Pakistan will no longer attract stamp duty on the transfer of assets, including immovable property, resulting from amalgamations.
The exemption applies to mergers carried out under the Companies Act, 2017, removing what corporate stakeholders had long described as a costly financial and procedural hurdle in restructuring transactions.
In a statement, the SECP welcomed the decision, saying it would promote investment and support business activity in Punjab. The regulator also thanked the court and the Government of Punjab for addressing what it termed a major impediment to corporate reorganisation.
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