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

President of Pakistan

Finance Minister

Chairman

Prime Minister

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

Agricultural sector only

Financial services only

Only from multinational corporations

Both individuals and businesses

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

To offer financial advice to companies

To enforce international trade agreements

To identify individuals with income tax exemptions

To monitor and ensure compliance with tax laws

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

Ministry of Commerce

Income Tax and Customs

Pakistan Revenue Authority

State Bank of Pakistan

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

Through the introduction of e-filing for tax returns

By allowing businesses to pay taxes in installments

By offering tax exemptions for IT companies

Through international trade agreements

6. 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

7. 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 conducting regular audits and inspections

By eliminating income tax for small businesses

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

Shabbar Zaidi

Dr. Muhammad Ashfaq Ahmad

Asim Ahmad

Raza Baqir

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

Reducing the corporate tax rate

Lowering taxes for multinational corporations

Ensuring effective revenue collection

Promoting non-taxable income

10. 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

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

Income tax

Poll tax

Property tax

Land tax

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

To reduce the amount of revenue collected

To offer tax benefits to international companies

To punish tax evaders

To encourage voluntary tax compliance

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

To increase tax rates on certain commodities

To reduce the number of tax audits

To simplify the process of submitting tax returns

To allow taxpayers to pay in installments

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

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

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

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

Municipal Tax

Provincial Sales Tax

Income Tax

Education Tax

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

Corporate tax

Agricultural tax

Sales tax

Income tax

17. 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 provides loans to small businesses

FBR prevents business growth through high taxes

FBR reduces business taxes to encourage foreign businesses

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

Tax audit reforms

E-filing of tax returns

Introduction of new tax brackets

Tax amnesty program

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

To manage government subsidies for low-income citizens

To issue government bonds for financing

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

To track all international financial transactions

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

Customs duties

Inheritance tax

Property tax

Sales tax

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

To audit individual tax returns

To manage taxes and duties on imports and exports

To monitor real estate transactions

To collect taxes from business owners

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

Capital gains tax

Inheritance tax

Customs duties

Sales tax

23. 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

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

Foreign currency regulation

Import and export tax exemptions

Import duties

Export subsidies

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

Limiting the scope of tax audits

Imposing higher tax rates on imports

Introduction of new tax laws

Extending tax amnesty programs

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

To manage currency exchange rates

To implement international monetary policies

To promote domestic investment only

To regulate import/export taxes and duties

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

State Bank of Pakistan

Income Tax and Customs Divisions

Pakistan Revenue Authority

Ministry of Finance

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

To manage tax collection from the agricultural sector

To distribute tax refunds to businesses

To collect duties and taxes on imports and exports

To handle tax compliance from multinational companies

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

State Bank of Pakistan

National Database and Registration Authority

Pakistan International Airlines

Customs Department

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

To set tax rates for large corporations

To prosecute tax evaders

To eliminate foreign exchange barriers

To conduct audits and identify fraud

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

Imposing higher fines for tax evasion

Establishing an automated online system for businesses to file taxes

Raising tax rates on exports

Offering tax exemptions for all SMEs

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

National database of tax defaulters

Tax amnesty schemes

International financial audits

Annual income reports

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

Capital gains tax

Property tax

Sales tax

Agricultural tax

34. 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 set tax rates for all businesses

To offer tax exemptions for local businesses

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

To make the tax system more complicated

To limit private sector growth

To increase government spending

To ensure greater tax compliance and increase revenue collection

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

Encourages individuals to report tax evasion

Investigates and enforces penalties for tax evaders

Provides tax exemptions for individuals who evade taxes

Nothing, as tax evasion is legal

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

To investigate and prevent tax evasion

To conduct financial planning for the government

To create educational programs about taxes

To set up tax exemptions for international businesses

38. 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 regulate banking operations

To collect taxes only from businesses

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

Lowering the tax rates for the wealthy

E-filing and automation of the tax system

Introduce tax exemptions for large corporations

Releasing tax data to the public

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

Regulate business operations

Formulate tax policies

Issue currency notes

Provide social security

41. 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 set interest rates

To manage government revenue collection

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

To prevent international investments in Pakistan

To eliminate taxation for large corporations

To simplify and modernize the tax collection process

To increase tax rates on all individuals

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

Providing loans to businesses

Offering tax incentives to multinational corporations

Tax audits and assessments

Running financial institutions

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

Property tax

Corporate tax

Inheritance tax

Sales tax

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

To ensure that more taxpayers follow tax laws

To increase government spending

To promote the use of cash transactions

To increase penalties for tax evasion

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

It oversees defense expenditures

It collects the majority of government revenue

It supports the stock market

It is the primary body for monetary control

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

National education program

Foreign investment promotion

Free healthcare services

Online tax filing system

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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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