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

Pakistan International Airlines

National Database and Registration Authority

State Bank of Pakistan

Customs Department

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

Investigates and enforces penalties for tax evaders

Nothing, as tax evasion is legal

Encourages individuals to report tax evasion

Provides tax exemptions for individuals who evade taxes

3. 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

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

Customs duties

Inheritance tax

Property tax

Sales tax

5. 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 track all international financial transactions

To manage government subsidies for low-income citizens

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

Imposing higher tax rates on imports

Extending tax amnesty programs

Limiting the scope of tax audits

Introduction of new tax laws

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

Capital gains tax

Sales tax

Property tax

Agricultural tax

8. 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

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

By conducting regular audits and inspections

By providing tax breaks to foreign companies

By eliminating income tax for small businesses

By offering free tax advisory services to corporations

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

To punish tax evaders

To offer tax benefits to international companies

To encourage voluntary tax compliance

To reduce the amount of revenue collected

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

Municipal Tax

Education Tax

Income Tax

Provincial Sales Tax

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

To regulate the economy

To provide educational services

To manage national security

To collect taxes and revenue

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

Free healthcare services

National education program

Foreign investment promotion

Online tax filing system

14. 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 collects excise duties from domestic manufacturers

FBR is not responsible for excise duties

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

To develop and implement tax policies

To offer tax exemptions for local businesses

To set tax rates for all businesses

To enforce national trade policies

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

To collect taxes only from businesses

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

To provide tax deductions for international companies

To regulate banking operations

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

To collect duties and taxes on imports and exports

To handle tax compliance from multinational companies

To distribute tax refunds to businesses

To manage tax collection from the agricultural sector

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

Tax amnesty schemes

Annual income reports

International financial audits

National database of tax defaulters

19. 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 enforce international trade agreements

To identify individuals with income tax exemptions

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

Income tax

Poll tax

Property tax

Land tax

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

Only from multinational corporations

Both individuals and businesses

Agricultural sector only

Financial services only

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

Pakistan Revenue Authority

Ministry of Commerce

State Bank of Pakistan

Income Tax and Customs

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

Sales tax

Agricultural tax

Corporate tax

Income tax

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

Asim Ahmad

Shabbar Zaidi

Raza Baqir

Dr. Muhammad Ashfaq Ahmad

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

To increase government spending

To ensure greater tax compliance and increase revenue collection

To limit private sector growth

To make the tax system more complicated

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

To promote domestic investment only

To implement international monetary policies

To manage currency exchange rates

To regulate import/export taxes and duties

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

Lowering the tax rates for the wealthy

Releasing tax data to the public

Introduce tax exemptions for large corporations

E-filing and automation of the tax system

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

Inheritance tax

Property tax

Sales tax

Corporate tax

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

To create educational programs about taxes

To investigate and prevent tax evasion

To conduct financial planning for the government

To set up tax exemptions for international businesses

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

To set interest rates

To manage government revenue collection

To provide loans to the government

To monitor the government’s expenses

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

To promote the use of cash transactions

To ensure that more taxpayers follow tax laws

To increase government spending

To increase penalties for tax evasion

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

To conduct audits and identify fraud

To set tax rates for large corporations

To prosecute tax evaders

To eliminate foreign exchange barriers

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

Capital gains tax

Customs duties

Sales tax

Inheritance tax

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

Establishing an automated online system for businesses to file taxes

Offering tax exemptions for all SMEs

Raising tax rates on exports

Imposing higher fines for tax evasion

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

Pakistan Revenue Authority

Income Tax and Customs Divisions

State Bank of Pakistan

Ministry of Finance

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

Ensuring effective revenue collection

Lowering taxes for multinational corporations

Reducing the corporate tax rate

Promoting non-taxable income

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

Educational grants

Corporate tax returns

Sales tax collection

Banking policies

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

To manage taxes and duties on imports and exports

To collect taxes from business owners

To monitor real estate transactions

To audit individual tax returns

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

To eliminate taxation for large corporations

To prevent international investments in Pakistan

To increase tax rates on all individuals

To simplify and modernize the tax collection process

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

FBR reduces business taxes to encourage foreign businesses

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

41. 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

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

E-filing of tax returns

Introduction of new tax brackets

Tax audit reforms

Tax amnesty program

43. 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

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

Formulate tax policies

Issue currency notes

Regulate business operations

Provide social security

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

Offering tax incentives to multinational corporations

Running financial institutions

Providing loans to businesses

Tax audits and assessments

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

Export subsidies

Import duties

Import and export tax exemptions

Foreign currency regulation

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

Finance Minister

Prime Minister

President of Pakistan

Chairman

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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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