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

Pakistan Revenue Authority

State Bank of Pakistan

Ministry of Finance

Income Tax and Customs Divisions

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

Chairman

President of Pakistan

Finance Minister

Prime Minister

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

Educational grants

Corporate tax returns

Banking policies

Sales tax collection

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

FBR prevents business growth through high taxes

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

FBR provides loans to small businesses

FBR reduces business taxes to encourage foreign businesses

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

To distribute tax refunds to businesses

To collect duties and taxes on imports and exports

To manage tax collection from the agricultural sector

To handle tax compliance from multinational companies

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

To track all international financial transactions

To issue government bonds for financing

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

To manage government subsidies for low-income citizens

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

To offer tax exemptions for local businesses

To enforce national trade policies

To set tax rates for all businesses

To develop and implement tax policies

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

FBR collects excise duties from domestic manufacturers

FBR collects excise duties on international trade

FBR is not responsible for excise duties

Excise duties are collected at provincial levels only

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

Online tax filing system

Foreign investment promotion

National education program

Free healthcare services

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

Provides tax exemptions for individuals who evade taxes

Encourages individuals to report tax evasion

Nothing, as tax evasion is legal

Investigates and enforces penalties for tax evaders

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

Property tax

Corporate tax

Sales tax

Inheritance tax

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

To monitor real estate transactions

To manage taxes and duties on imports and exports

To audit individual tax returns

To collect taxes from business owners

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

Imposing higher fines for tax evasion

Offering tax exemptions for all SMEs

Raising tax rates on exports

Establishing an automated online system for businesses to file taxes

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

Asim Ahmad

Raza Baqir

Shabbar Zaidi

Dr. Muhammad Ashfaq Ahmad

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

To create educational programs about taxes

To conduct financial planning for the government

To set up tax exemptions for international businesses

To investigate and prevent tax evasion

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

To provide educational services

To collect taxes and revenue

To manage national security

To regulate the economy

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

Lowering taxes for multinational corporations

Reducing the corporate tax rate

Ensuring effective revenue collection

Promoting non-taxable income

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

Introduce tax exemptions for large corporations

Lowering the tax rates for the wealthy

Releasing tax data to the public

E-filing and automation of the tax system

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

To eliminate foreign exchange barriers

To set tax rates for large corporations

To conduct audits and identify fraud

To prosecute tax evaders

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

Corporate tax

Agricultural tax

Income tax

Sales tax

21. 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

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

Provincial Sales Tax

Income Tax

Municipal Tax

Education Tax

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

Tax audits and assessments

Offering tax incentives to multinational corporations

Providing loans to businesses

Running financial institutions

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

Tax amnesty program

Tax audit reforms

E-filing of tax returns

Introduction of new tax brackets

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

Pakistan Revenue Authority

Ministry of Commerce

Income Tax and Customs

State Bank of Pakistan

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

By offering tax exemptions for IT companies

By allowing businesses to pay taxes in installments

Through international trade agreements

Through the introduction of e-filing for tax returns

27. 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

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

Inheritance tax

Sales tax

Customs duties

Capital gains tax

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

To manage currency exchange rates

To promote domestic investment only

To implement international monetary policies

To regulate import/export taxes and duties

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

By providing tax breaks to foreign companies

By conducting regular audits and inspections

By offering free tax advisory services to corporations

By eliminating income tax for small businesses

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

Foreign currency regulation

Import duties

Export subsidies

Import and export tax exemptions

32. 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 increase tax rates on certain commodities

To reduce the number of tax audits

33. 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

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

To monitor and ensure compliance with tax laws

To enforce international trade agreements

To identify individuals with income tax exemptions

To offer financial advice to companies

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

Sales tax

Customs duties

Inheritance tax

Property tax

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

Poll tax

Property tax

Income tax

Land tax

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

To encourage voluntary tax compliance

To offer tax benefits to international companies

To reduce the amount of revenue collected

To punish tax evaders

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

To prevent international investments in Pakistan

To simplify and modernize the tax collection process

To increase tax rates on all individuals

To eliminate taxation for large corporations

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

Tax amnesty schemes

Annual income reports

National database of tax defaulters

International financial audits

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

Introduction of new tax laws

Extending tax amnesty programs

Limiting the scope of tax audits

Imposing higher tax rates on imports

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

Property tax

Agricultural tax

Capital gains tax

Sales tax

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

FBR focuses only on small-scale business taxes

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

FBR is the only body responsible for national revenue collection

FBR is not involved in the collection of revenue

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

To make the tax system more complicated

To increase government spending

To ensure greater tax compliance and increase revenue collection

To limit private sector growth

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

Agricultural sector only

Financial services only

Both individuals and businesses

Only from multinational corporations

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

It oversees defense expenditures

It supports the stock market

It collects the majority of government revenue

It is the primary body for monetary control

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

State Bank of Pakistan

Pakistan International Airlines

National Database and Registration Authority

Customs Department

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

Formulate tax policies

Regulate business operations

Issue currency notes

Provide social security

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Mustansar KhanLast Updated: July 8, 2025

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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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