The government of Pakistan is tightening the noose around tax evaders once again — and this time, the impact could be felt directly in the wallets of ordinary citizens.

A major tax reform in Pakistan is reportedly on the way, aiming to bridge a massive revenue gap and meet the International Monetary Fund’s (IMF) tough requirements.

According to reports, one of the key proposals under this tax reform in Pakistan is a sharp increase in the tax on cash withdrawals by non-filers — from the current 0.8% to 1.5%. The move is expected to generate around Rs30 billion in revenue. For millions of Pakistanis who are not on the tax rolls, this means every ATM withdrawal or bank transaction could soon come at a higher cost.

The government is under pressure to recover a shortfall of nearly Rs200 billion in the second half of the current fiscal year. Tax authorities fell short of their target in the first half, collecting Rs2,885 billion against a goal of Rs3,083 billion. The new proposals, shared with the IMF during recent staff-level talks, show Pakistan’s intent to meet the revenue goals linked to the $7 billion loan program.

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Officials confirmed that while a mini-budget has been ruled out, a contingency plan outlining possible tax hikes has been presented to the IMF. Among the measures being considered are higher taxes on items and services that affect everyday life.

Solar panels, for example, could see their sales tax jump from 10% to 18% — a move that might discourage renewable energy adoption and raise costs for homeowners shifting to cleaner energy sources. Similarly, mobile users could soon pay more as taxes on phone calls are expected to increase from 15% to 17.5%, while landline users might see their rates rise from 10% to 12.5%. Together, these steps could add Rs44 billion to the government’s coffers.

Even popular snack items like biscuits, sweets, and chips aren’t spared, with a proposed 16% Federal Excise Duty (FED) projected to bring in another Rs70 billion.

However, critics warn that the cumulative impact of these changes will make daily life more expensive for average Pakistanis. From paying extra at the ATM to higher bills for phone calls and solar energy systems, the government’s aggressive fiscal measures are expected to touch nearly every household.