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Federal Board of Revenue (FBR) Function and Role Test Online

Mustansar KhanLast Updated: July 8, 2025

Federal Board of Revenue (FBR) Function and Role Test Online

Federal Board of Revenue (FBR) Function and Role Test

Total Questions:	47
Time Allowed:	20 Minutes
Total Marks:	47
How to Attempt Test:	Please choose the right Option in MCQ-type question.
Test Helpful For:	FBR Sub Inspector Test Customs Inspector Test FBR Interviews FBR Sepoy Test Preparation for Customs and Tax Related Questions

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1. Which of the following taxes is directly imposed by FBR on goods entering Pakistan?

Property tax

Sales tax

Inheritance tax

Customs duties

2. Which of the following is one of the main functions of the FBR?

Regulate business operations

Issue currency notes

Provide social security

Formulate tax policies

3. Which department falls under the Federal Board of Revenue (FBR)?

State Bank of Pakistan

National Database and Registration Authority

Customs Department

Pakistan International Airlines

4. What is the FBR’s role in managing tax fraud?

To prosecute tax evaders

To conduct audits and identify fraud

To set tax rates for large corporations

To eliminate foreign exchange barriers

5. Which of the following taxes is NOT directly managed by the FBR?

Income tax

Agricultural tax

Corporate tax

Sales tax

6. Which of the following is the primary function of the Federal Board of Revenue (FBR)?

To regulate the economy

To provide educational services

To collect taxes and revenue

To manage national security

7. Which of the following taxes is collected by the FBR from business entities?

Corporate tax

Property tax

Inheritance tax

Sales tax

8. How does the FBR encourage businesses to comply with tax laws?

By providing tax breaks to foreign companies

By offering free tax advisory services to corporations

By eliminating income tax for small businesses

By conducting regular audits and inspections

9. Which of the following is an FBR initiative to broaden the tax base?

Extending tax amnesty programs

Imposing higher tax rates on imports

Introduction of new tax laws

Limiting the scope of tax audits

10. How does the FBR promote digitalization of tax services?

Through international trade agreements

By allowing businesses to pay taxes in installments

By offering tax exemptions for IT companies

Through the introduction of e-filing for tax returns

11. Who is the current Chairman of the Federal Board of Revenue (FBR)?

Asim Ahmad

Raza Baqir

Shabbar Zaidi

Dr. Muhammad Ashfaq Ahmad

12. What is the main goal of the FBR’s initiatives to increase voluntary tax compliance?

To ensure that more taxpayers follow tax laws

To promote the use of cash transactions

To increase penalties for tax evasion

To increase government spending

13. What does the FBR do in the case of tax evasion?

Provides tax exemptions for individuals who evade taxes

Investigates and enforces penalties for tax evaders

Nothing, as tax evasion is legal

Encourages individuals to report tax evasion

14. Which of the following taxes does the FBR collect from individuals?

Property tax

Income tax

Land tax

Poll tax

15. What is the key purpose of the FBR’s online tax filing system?

To allow taxpayers to pay in installments

To simplify the process of submitting tax returns

To reduce the number of tax audits

To increase tax rates on certain commodities

16. Which of the following is the role of the FBR in ensuring tax compliance?

Running financial institutions

Tax audits and assessments

Providing loans to businesses

Offering tax incentives to multinational corporations

17. What is the FBR’s main responsibility in managing tax collection?

To track all international financial transactions

To manage government subsidies for low-income citizens

To facilitate the collection of taxes like income, sales, and customs duties

To issue government bonds for financing

18. What is the role of the FBR in tax audits?

To offer financial advice to companies

To monitor and ensure compliance with tax laws

To identify individuals with income tax exemptions

To enforce international trade agreements

19. Which of the following is a key initiative of the FBR to improve tax compliance?

National education program

Free healthcare services

Online tax filing system

Foreign investment promotion

20. Which of the following taxes is administered by the FBR for imports and exports?

Customs duties

Inheritance tax

Capital gains tax

Sales tax

21. What does the FBR primarily aim to achieve with its tax reforms?

To ensure greater tax compliance and increase revenue collection

To limit private sector growth

To make the tax system more complicated

To increase government spending

22. What key initiative was launched by FBR to increase voluntary compliance in 2020?

Tax audit reforms

Introduction of new tax brackets

Tax amnesty program

E-filing of tax returns

23. Which of the following best defines the FBR’s role in tax policy development?

To enforce national trade policies

To develop and implement tax policies

To offer tax exemptions for local businesses

To set tax rates for all businesses

24. Which of the following sectors does the FBR collect taxes from?

Financial services only

Only from multinational corporations

Both individuals and businesses

Agricultural sector only

25. Which of the following is an example of a key initiative introduced by the FBR for enhancing compliance?

Raising tax rates on exports

Imposing higher fines for tax evasion

Offering tax exemptions for all SMEs

Establishing an automated online system for businesses to file taxes

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26. What role does the FBR play in Pakistan’s economy?

It supports the stock market

It oversees defense expenditures

It is the primary body for monetary control

It collects the majority of government revenue

27. Which of the following initiatives was launched by FBR to increase transparency in tax collections?

Releasing tax data to the public

Introduce tax exemptions for large corporations

E-filing and automation of the tax system

Lowering the tax rates for the wealthy

28. Which of the following is a key goal of the FBR’s reforms?

Ensuring effective revenue collection

Promoting non-taxable income

Lowering taxes for multinational corporations

Reducing the corporate tax rate

29. What is the key objective of FBR’s customs division?

To distribute tax refunds to businesses

To handle tax compliance from multinational companies

To collect duties and taxes on imports and exports

To manage tax collection from the agricultural sector

30. What is the purpose of FBR’s tax amnesty schemes?

To offer tax benefits to international companies

To punish tax evaders

To reduce the amount of revenue collected

To encourage voluntary tax compliance

31. What does the FBR use to monitor and enforce tax compliance?

National database of tax defaulters

Annual income reports

International financial audits

Tax amnesty schemes

32. Which of the following is the FBR responsible for managing in relation to indirect taxes?

Sales tax collection

Banking policies

Educational grants

Corporate tax returns

33. Who heads the Federal Board of Revenue (FBR)?

Prime Minister

President of Pakistan

Chairman

Finance Minister

34. Which of the following statements is true about FBR’s role in national revenue?

FBR manages a major portion of the country’s revenue collection

FBR is not involved in the collection of revenue

FBR focuses only on small-scale business taxes

FBR is the only body responsible for national revenue collection

35. Which of the following best describes the role of the FBR in the federal budget?

To monitor the government’s expenses

To provide loans to the government

To manage government revenue collection

To set interest rates

36. Which of the following describes FBR’s role in the collection of excise duties?

FBR is not responsible for excise duties

FBR collects excise duties on international trade

Excise duties are collected at provincial levels only

FBR collects excise duties from domestic manufacturers

37. Which of the following divisions does the FBR operate under?

State Bank of Pakistan

Income Tax and Customs

Pakistan Revenue Authority

Ministry of Commerce

38. The FBR’s structure includes which of the following divisions?

Income Tax and Customs Divisions

Ministry of Finance

State Bank of Pakistan

Pakistan Revenue Authority

39. What is the FBR’s role in tax policy development?

To provide tax deductions for international companies

To collect taxes only from businesses

To regulate banking operations

To formulate tax policies and set tax rates for the federal government

40. Which of the following is an objective of the FBR’s ongoing reforms?

To simplify and modernize the tax collection process

To increase tax rates on all individuals

To eliminate taxation for large corporations

To prevent international investments in Pakistan

41. Which of the following best describes FBR’s role in facilitating business growth?

FBR provides loans to small businesses

FBR reduces business taxes to encourage foreign businesses

FBR prevents business growth through high taxes

FBR enforces tax compliance to ensure a level playing field for businesses

42. What is the primary purpose of FBR's customs division?

To collect taxes from business owners

To audit individual tax returns

To manage taxes and duties on imports and exports

To monitor real estate transactions

43. Which of the following is a function of the FBR’s Directorate of Intelligence and Investigation?

To create educational programs about taxes

To set up tax exemptions for international businesses

To conduct financial planning for the government

To investigate and prevent tax evasion

44. Which of the following taxes does the FBR administer related to the sale of goods and services?

Agricultural tax

Capital gains tax

Property tax

Sales tax

45. Which of the following functions is managed by the FBR to assist with international trade?

Import duties

Export subsidies

Foreign currency regulation

Import and export tax exemptions

46. Which of the following taxes is collected by the FBR?

Income Tax

Provincial Sales Tax

Education Tax

Municipal Tax

47. Which is a major role of the FBR in Pakistan’s international trade?

To regulate import/export taxes and duties

To implement international monetary policies

To manage currency exchange rates

To promote domestic investment only

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Mustansar KhanLast Updated: July 8, 2025

Federal Board of Revenue (FBR) Function and Role Test Online

Federal Board of Revenue (FBR) Function and Role Test Online

Federal Board of Revenue (FBR) Function and Role Test

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