Pakistan May Impose New Taxes on Mobile Calls, Solar Panels, and Cash Withdrawals to Meet IMF Targets
Islamabad: Pakistan has assured the **International Monetary Fund (IMF)** that it will implement **additional tax measures worth Rs200 billion** in January 2026 if the government fails to meet its revenue target or if expenditures exceed the agreed limits during the first half of the current fiscal year.
According to a report by *The Express Tribune*, the proposed measures include **higher income tax rates on landline and mobile phone calls**, as well as an **increase in withholding tax on cash withdrawals from banks**. These measures will only be enforced if the **Federal Board of Revenue (FBR)** misses its collection target by the end of December or if government spending surpasses the fiscal ceiling.
Sources said other alternative proposals under consideration include **raising the sales tax on solar panels from 10% to 18%** and **imposing a 16% Federal Excise Duty (FED)** on confectionery and biscuits. The government is also reviewing a **nationwide sales tax increase from 18% to 19%**, which could generate up to **Rs225 billion annually**, though the focus remains on **targeted sector-specific taxation**.
The FBR is currently facing a **revenue shortfall of Rs198 billion** in the first quarter of the fiscal year, having collected **Rs3.65 trillion by October 29**, while an additional **Rs460 billion** must be collected within the next two days to meet the four-month target.
### Proposed Tax Measures (Estimated Annual Revenue):
* **Withholding tax on bank withdrawals (non-filers):** from 0.8% to 1.5% — *Rs30 billion*
* **Landline tax:** from 10% to 12.5% — *Rs20 billion*
* **Mobile call tax:** from 15% to 17.5% — *Rs24 billion*
* **FED on confectionery and biscuits (16%)** — *Rs70 billion*
If implemented, the overall tax burden on processed food items could rise to **38%**, sources added.
Meanwhile, **Sindh and Punjab** have postponed the collection of increased agricultural income tax for one year. The FBR’s plan to **broaden the tax base** remains sluggish, raising concerns that the existing taxpayers will bear the additional burden.
The IMF has so far **refused to lower Pakistan’s primary fiscal surplus target** of 1.6% of GDP (Rs2.1 trillion), but has indicated that it may reconsider after final flood loss assessments are completed.
Separately, the **World Bank** has revised Pakistan’s **growth forecast upward to 3%**, citing lower-than-expected flood damage. The government expects that **half of the Rs200 billion in additional tax revenue** can be collected between **January and June 2026**, pending IMF approval.
