ISLAMABAD – The government of Pakistan continues to tighten noose around those evading taxes, and now federal government is reportedly preparing shake-up of the country’s tax landscape, with proposals that could hit ordinary citizens right in their wallets.
One of plan is sharp increase in tax on cash withdrawals by non-filers, which could rise from 0.8percent to 1.5percent, potentially generating Rs30 billion in revenue.
For millions of non-filers, this means every ATM withdrawal or bank transaction could come at higher cost. The move is part of broader effort to plug Rs200 billion revenue gap in the second half of the current fiscal year. Tax authorities failed to meet its target in the first half, collecting Rs2,885 billion against a goal of Rs3,083 billion leaving the government moviong for other measures to make up the shortfall.
The proposed measures were shared with the International Monetary Fund (IMF) during recent staff-level talks, emphasizing the government’s intent to meet revenue expectations linked to the next tranche of the $7 billion IMF loan program. As the government rejected plans for mini-budget, officials confirmed that contingency plan outlining potential tax hikes had been presented to the IMF.
Solar panels could see their sales tax jump from 10pc to 18pc, potentially raising costs for renewable energy users and slowing adoption of cleaner energy sources.
Telephone users are also in the government’s sights as taxes on mobile calls may rise from 15% to 17.5%, and landline phones from 10% to 12.5%, expected to bring in a combined Rs44 billion.
Suyagry items like biscuits, sweets, and chips could face a 16% Federal Excise Duty (FED), projected to generate an additional Rs70 billion.
The proposed cash withdrawal tax could particularly hit masses who are not taxpayers, turning everyday banking transactions into a heavier financial burden. Combined with higher costs for solar panels, phone usage, and everyday snacks, the government’s tax plan is shaping up to touch almost every household.
Punjab collects Rs133 billion in taxes through digital payments
