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

Tax amnesty schemes

International financial audits

Annual income reports

National database of tax defaulters

2. 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

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

Agricultural tax

Sales tax

Corporate tax

Income tax

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

Excise duties are collected at provincial levels only

FBR collects excise duties on international trade

FBR is not responsible for excise duties

FBR collects excise duties from domestic manufacturers

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

Land tax

Property tax

Income tax

Poll tax

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

To increase tax rates on certain commodities

To allow taxpayers to pay in installments

To reduce the number of tax audits

To simplify the process of submitting tax returns

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

Lowering taxes for multinational corporations

Promoting non-taxable income

Reducing the corporate tax rate

Ensuring effective revenue collection

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

Finance Minister

President of Pakistan

Prime Minister

Chairman

9. 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 eliminate taxation for large corporations

To increase tax rates on all individuals

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

Municipal Tax

Education Tax

Income Tax

Provincial Sales Tax

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

Customs Department

Pakistan International Airlines

State Bank of Pakistan

National Database and Registration Authority

12. 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

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

To implement international monetary policies

To promote domestic investment only

To manage currency exchange rates

To regulate import/export taxes and duties

14. 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

Lowering the tax rates for the wealthy

E-filing and automation of the tax system

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

To offer tax benefits to international companies

To reduce the amount of revenue collected

To punish tax evaders

To encourage voluntary tax compliance

16. 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

17. 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

18. 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 focuses only on small-scale business taxes

FBR is not involved in the collection of revenue

FBR is the only body responsible for national revenue collection

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

Sales tax

Inheritance tax

Property tax

Customs duties

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

Agricultural sector only

Both individuals and businesses

Financial services only

Only from multinational corporations

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

To increase penalties for tax evasion

To ensure that more taxpayers follow tax laws

To promote the use of cash transactions

To increase government spending

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

To monitor real estate transactions

To collect taxes from business owners

To manage taxes and duties on imports and exports

To audit individual tax returns

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

To manage government revenue collection

To monitor the government’s expenses

To provide loans to the government

To set interest rates

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

Extending tax amnesty programs

Limiting the scope of tax audits

Introduction of new tax laws

Imposing higher tax rates on imports

25. 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

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

Sales tax

Capital gains tax

Inheritance tax

Customs duties

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

Online tax filing system

National education program

Foreign investment promotion

Free healthcare services

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

To ensure greater tax compliance and increase revenue collection

To increase government spending

To limit private sector growth

To make the tax system more complicated

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

Investigates and enforces penalties for tax evaders

Encourages individuals to report tax evasion

Nothing, as tax evasion is legal

Provides tax exemptions for individuals who evade taxes

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

Income Tax and Customs

Ministry of Commerce

Pakistan Revenue Authority

State Bank of Pakistan

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

Dr. Muhammad Ashfaq Ahmad

Raza Baqir

Shabbar Zaidi

Asim Ahmad

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

By conducting regular audits and inspections

By offering free tax advisory services to corporations

By eliminating income tax for small businesses

By providing tax breaks to foreign companies

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

It collects the majority of government revenue

It supports the stock market

It oversees defense expenditures

It is the primary body for monetary control

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

To investigate and prevent tax evasion

To set up tax exemptions for international businesses

To create educational programs about taxes

To conduct financial planning for the government

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

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

To track all international financial transactions

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

To prosecute tax evaders

To eliminate foreign exchange barriers

To set tax rates for large corporations

To conduct audits and identify fraud

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

Import duties

Foreign currency regulation

Import and export tax exemptions

Export subsidies

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

Through international trade agreements

Through the introduction of e-filing for tax returns

By allowing businesses to pay taxes in installments

By offering tax exemptions for IT companies

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

State Bank of Pakistan

Pakistan Revenue Authority

Income Tax and Customs Divisions

Ministry of Finance

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

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

FBR prevents business growth through high taxes

FBR provides loans to small businesses

FBR reduces business taxes to encourage foreign businesses

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

To collect duties and taxes on imports and exports

To manage tax collection from the agricultural sector

To distribute tax refunds to businesses

To handle tax compliance from multinational companies

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

Property tax

Inheritance tax

Sales tax

Corporate tax

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

To offer tax exemptions for local businesses

To set tax rates for all businesses

To enforce national trade policies

To develop and implement tax policies

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

Introduction of new tax brackets

Tax audit reforms

Tax amnesty program

E-filing of tax returns

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

To regulate the economy

To manage national security

To collect taxes and revenue

To provide educational services

46. 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

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

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

To provide tax deductions for international companies

To collect taxes only from businesses

To regulate banking operations

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

Federal Board of Revenue (FBR) Function and Role Test

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