ISLAMABAD:
The Government of Punjab has abolished stamp duty on property transfers arising from corporate mergers, in a move aimed at facilitating business restructuring and boosting investment.
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, merger schemes approved by the court and the Securities and Exchange Commission of Pakistan (SECP) will no longer attract stamp duty on the transfer of assets, including property, resulting from amalgamations.
Read: Pakistan’s reforms stabilise economy under EFF programme: IMF
The exemption applies to mergers carried out under the Companies Act 2017, removing what corporate stakeholders had described as a financial and procedural hurdle in restructuring transactions.
In a statement, the SECP said the decision would promote investment and support business activity in the province. The regulator also thanked the court and the Punjab government for addressing what it termed a key impediment to corporate reorganisation.
