Punjab moves to cut stamp duty on property transactions from 3% to 1%

The Punjab government on Thursday issued the Stamp (Amendment) Ordinance 2026, reducing stamp duty on immovable property transactions from 3% to 1% across the province following approval from Governor Sardar Saleem Haider Khan.

According to a notification published in the Punjab Gazette, stated that ordinance sought to amend the Stamp Act 1899 to address disparities between urban and rural tax rates and streamline property transfer regulations.

"Under the revised framework, stamp duty on immovable property transactions has been standardised at 1%, replacing the previous system where rural areas were charged 3% while urban areas were taxed at 1%," it said.

It further stated that the schedule to the Act has also been amended, introducing a structured duty on assignments and transfers. For transactions completed within 12 months, the stamp duty was set at 1% of the property value, while transactions beyond 12 months were subject to 2%.

The statement of objects and reasons explained that the reforms aimed to harmonise rates and improve efficiency in property transactions. It stated that, “The proposed amendments seek to introduce and define ‘Assignable deed’ and to fix a uniform stamp duty at 1% on such conveyances.”

The Stamp (Amendment) Ordinance was presented in the Punjab Assembly a day earlier, marking a key step toward revising the existing tax structure on property transactions. Following approval, the ordinance would remain in force for 90 days.

The proposed amendments also included the addition of “transferable agreements” to the Stamp Act of 1899. Officials said this inclusion was essential to make the law more effective and comprehensive. The government had described the move as an effort to standardise the stamp duty system across Punjab.

The amendments also introduced and defined the concept of an “assignable deed,” allowing the transfer of rights, title, and interest in immovable property from one person to another.

According to the gazette text, the definition reads: “assignable deed means an instrument whereby a person assigns his rights, title, and interest in an immovable property.”