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 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

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

To manage currency exchange rates

To implement international monetary policies

To regulate import/export taxes and duties

To promote domestic investment only

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

Foreign currency regulation

Import duties

Import and export tax exemptions

Export subsidies

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

To collect taxes and revenue

To provide educational services

To regulate the economy

To manage national security

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

FBR provides loans to small businesses

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

FBR reduces business taxes to encourage foreign businesses

FBR prevents business growth through high taxes

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

Income tax

Corporate tax

Agricultural tax

Sales tax

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

Property tax

Poll tax

Land tax

Income tax

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

Offering tax exemptions for all SMEs

Imposing higher fines for tax evasion

Establishing an automated online system for businesses to file taxes

Raising tax rates on exports

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

Customs Department

National Database and Registration Authority

State Bank of Pakistan

Pakistan International Airlines

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

Foreign investment promotion

National education program

Online tax filing system

Free healthcare services

11. 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

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

To prevent international investments in Pakistan

To increase tax rates on all individuals

To eliminate taxation for large corporations

To simplify and modernize the tax collection process

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

Introduction of new tax brackets

E-filing of tax returns

Tax amnesty program

Tax audit reforms

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

To set tax rates for all businesses

To offer tax exemptions for local businesses

To enforce national trade policies

To develop and implement tax policies

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

Customs duties

Inheritance tax

Sales tax

Property tax

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

Shabbar Zaidi

Dr. Muhammad Ashfaq Ahmad

Raza Baqir

Asim Ahmad

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

Imposing higher tax rates on imports

Introduction of new tax laws

Extending tax amnesty programs

Limiting the scope of tax audits

18. 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

Through international trade agreements

By offering tax exemptions for IT companies

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

To enforce international trade agreements

To identify individuals with income tax exemptions

To monitor and ensure compliance with tax laws

To offer financial advice to companies

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

To conduct financial planning for the government

To investigate and prevent tax evasion

To create educational programs about taxes

To set up tax exemptions for international businesses

21. 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

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

It oversees defense expenditures

It collects the majority of government revenue

It is the primary body for monetary control

It supports the stock market

23. 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 the only body responsible for national revenue collection

FBR is not involved in the collection of revenue

24. 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

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

Income Tax

Municipal Tax

Education Tax

Provincial Sales Tax

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

National database of tax defaulters

Annual income reports

Tax amnesty schemes

International financial audits

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

Corporate tax

Inheritance tax

Property tax

Sales tax

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

Sales tax collection

Corporate tax returns

Educational grants

Banking policies

29. 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

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

Agricultural tax

Property tax

Sales tax

Capital gains tax

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

Inheritance tax

Sales tax

Capital gains tax

Customs duties

32. 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

33. 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

34. 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 simplify the process of submitting tax returns

To reduce the number of tax audits

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

To set interest rates

To monitor the government’s expenses

To manage government revenue collection

To provide loans to the government

36. 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

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

To ensure greater tax compliance and increase revenue collection

To make the tax system more complicated

To limit private sector growth

To increase government spending

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

Pakistan Revenue Authority

Ministry of Finance

Income Tax and Customs Divisions

State Bank of Pakistan

39. 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

40. 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

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

Tax audits and assessments

Running financial institutions

Offering tax incentives to multinational corporations

Providing loans to businesses

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

Issue currency notes

Provide social security

Regulate business operations

Formulate tax policies

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

Financial services only

Only from multinational corporations

Agricultural sector only

Both individuals and businesses

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

Encourages individuals to report tax evasion

Investigates and enforces penalties for tax evaders

Nothing, as tax evasion is legal

Provides tax exemptions for individuals who evade taxes

45. 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

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

Prime Minister

President of Pakistan

Finance Minister

Chairman

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

State Bank of Pakistan

Ministry of Commerce

Income Tax and Customs

Pakistan Revenue Authority

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