Stamp duty, the single largest source of provincial tax revenue, has shown strong buoyancy since the early 1980s, driven mainly by property transactions. Yet its century‑old structure under the 1899 Stamp Act remains riddled with anomalies, outdated rates, and weak coverage. This study reviews the current system and proposes reforms to modernize and rationalize stamp duty by shifting selectively to ad valorem rates, broadening coverage to new financial instruments, and phasing in revisions. Adoption of these measures could yield substantial additional revenues, exceeding Rs 1.7 billion by 2002–03.
