The Punjab government has enacted a transformative fiscal policy by slashing stamp duty to a uniform 1% for all property transactions throughout the province. This major reform, introduced via the Stamp (Amendment) Ordinance 2026, aims to stimulate real estate growth and significantly lower the cost of transferring property. Approved by Governor Sardar Saleem Haider Khan, the new law removes the long-standing tax gap between urban and rural areas.
Previously, property buyers in rural regions faced a 3% duty, while those in urban centers paid only 1%. By standardizing the rate, the government is simplifying the transfer process and encouraging formal documentation in areas where high taxes previously served as a barrier to entry. To maintain market momentum, the 1% rate applies to transactions completed within a 12-month window; however, agreements that stretch beyond one year may be subject to an increased duty of up to 2%.
A key addition to this ordinance is the legal recognition of "assignable deeds," a move designed to bring informal property arrangements into the official tax system and enhance overall transparency.
While the measure has immediate legal effect, it is currently a temporary ordinance that requires formal approval from the Punjab Assembly within roughly 90 days to become permanent law. Market observers expect this reduction to trigger a boost in transaction volumes by making property ownership more accessible for everyone in Punjab.
