It'd be a really bad situation. I mean we rely on VPNs and tunnels a lot. For half the people doing home-office, logging into the company's VPN is the first thing in the morning. Field crew relies on them. That's an additional layer of protection in the ATM of your bank...

It'd wreck half the economy in the process. Or "they" need to outlaw specific things. Like private VPNs. And gather a list of private VPN providers and ban them via a great firewall. That's possible. And would make life worse in a country. It's possible to circumvent these measures. And it's difficult to discern traffic and distinguish VPN traffic from other encrypted traffic so the country might want to implement some harsh measures as well. A police force knocking on people's doors if they suspect them to evade law and demand they show their computer and smartphones.

So in conclusion your best option is probably to move to a different place if you can afford to, once that becomes reality. (Edit: Maybe your best option is to protest this, do campaigns, call your representative and try to stop it. So we dont get into this situation in the fist place.)