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Federal Excise Act 2005 Pakistan Test Online

Mustansar KhanLast Updated: July 8, 2025

Federal Excise Act 2005 Pakistan Test Online

Federal Excise Act 2005 Pakistan Test

Total Questions:	37
Time Allowed:	20 Minutes
Total Marks:	37
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 of the following is NOT subject to excise duty under the Federal Excise Act, 2005?

Tobacco products

Petroleum products

Alcoholic beverages

Household goods

2. What is the primary objective of the Federal Excise Act, 2005?

To impose duties on specific goods and services

To regulate public sector wages

To regulate property tax rates

To monitor business profits

3. What does the term "output tax" mean under the Federal Excise Act, 2005?

Tax collected on the sale of excisable goods and services

Tax paid on business capital

Tax on exports

Tax on income

4. What is the tax rate typically applied to luxury items under the Federal Excise Act, 2005?

No tax is applied to luxury goods

A tax rate based on the market value

A higher tax rate compared to regular goods

A fixed rate of 5%

5. Which of the following is required for businesses dealing in excisable goods to ensure tax compliance under the Federal Excise Act, 2005?

They must maintain records of production and sales

They must submit quarterly income tax returns

They must increase the price of goods sold

They must provide export documentation

6. What is the term "taxable supply" in the context of the Federal Excise Act, 2005?

Goods and services on which excise duty is applicable

Goods imported into Pakistan

Goods produced locally

Any good or service exempt from excise duty

7. What is "excisable goods" under the Federal Excise Act, 2005?

Goods that are sold without any tax

Goods that are not taxed at all

Goods exported out of Pakistan

Goods that are specifically subject to excise duties by the law

8. Which of the following goods is subject to excise duty under the Federal Excise Act, 2005 when manufactured locally?

Textiles

Agricultural products

Alcoholic beverages

Electronic components

9. How is excise duty calculated on goods manufactured in Pakistan under the Federal Excise Act, 2005?

A fixed amount per unit of the product

Based on the retail price of the goods

Based on the cost of production

By determining the market value of the goods

10. What is the procedure for claiming a refund of excise duty under the Federal Excise Act, 2005?

Claim it through an online form without documentation

Refunds are automatically provided

Only applicable to government departments

Submit a refund application with proof of payment and the excise tax invoice

11. Under the Federal Excise Act, 2005, what is the rate of excise duty on tobacco products?

A fixed amount based on quantity

A percentage of the retail price

There is no excise duty on tobacco products

A flat rate regardless of quantity

12. What is the penalty for evading excise duty under the Federal Excise Act, 2005?

A reduction in tax rates

A fine or imprisonment

A warning issued by FBR

A tax refund

13. Which of the following is covered under the Federal Excise Act, 2005?

Property tax

Sales tax on goods

Income tax

Excise duty on alcohol and tobacco products

14. Which of the following is an example of "taxable activity" under the Federal Excise Act, 2005?

Manufacturing goods like alcohol or cigarettes

Importing goods

Agricultural farming

Providing government services

15. What does "excise duty" refer to in the context of the Federal Excise Act, 2005?

Tax imposed on goods and services considered harmful or luxury

Tax on international trade

Tax on corporate profits

Tax on income

16. Which of the following items is subject to excise duty under the Federal Excise Act, 2005?

Basic food items

Textiles

Tobacco and cigarettes

Raw materials used in manufacturing

17. Which of the following is an example of an excise duty exemption under the Federal Excise Act, 2005?

Luxury vehicles

Tobacco products

Goods exported outside Pakistan

Manufactured goods like electronics

18. Which of the following is the responsibility of the Federal Board of Revenue (FBR) under the Federal Excise Act, 2005?

Approving tax exemptions for all industries

Setting import duties for goods

Collecting and administering excise duties

Regulating the financial sector

19. Which of the following is an example of a "manufactured good" under the Federal Excise Act, 2005?

Agricultural products

Finished goods like cosmetics

Real estate properties

Imported raw material

20. What does the term "excise tax invoice" refer to under the Federal Excise Act, 2005?

A document issued by the FBR for tax payments

A receipt for excise duties paid at customs

A document issued to taxpayers for claiming tax deductions

A document issued by the manufacturer or seller to the buyer for excise tax paid on goods

21. Which of the following is a taxable activity under the Federal Excise Act, 2005 for manufacturers?

Export of raw materials

Manufacturing of excisable goods

Transport of goods

Import of machinery

22. What is meant by "input tax" under the Federal Excise Act, 2005?

Tax collected on goods exported out of the country

Tax paid by consumers on goods purchased

Tax levied on the final sale of goods to consumers

Tax paid on raw materials used in the production of excisable goods

23. What is the purpose of "excise tax credit" under the Federal Excise Act, 2005?

To offset the excise duty paid on raw materials used in production against the duty collected from sales

To allow individuals to avoid excise duty

To provide tax benefits for exports

To reduce the tax rate for large businesses

24. What is the significance of "excisable goods" under the Federal Excise Act, 2005?

Goods that are exempt from government regulation

Goods exempt from sales tax

Goods on which excise duty is imposed due to their nature or value

Goods for export

25. Which document is necessary for a business to pay excise duties under the Federal Excise Act, 2005?

Business registration certificate

Excise duty registration number

Sales tax registration certificate

Import-export license

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26. What is "excise tax invoice" under the Federal Excise Act, 2005?

A document certifying the exemption from excise duty

A receipt for the payment of income tax

A document issued by FBR to all taxpayers

A record of sales and tax liabilities for a business engaged in excisable activities

27. What is "excise duty credit" under the Federal Excise Act, 2005?

The amount of excise duty that businesses can claim back

A tax rebate on imported goods

A special tax exemption for large companies

The tax paid by consumers

28. Which authority administers and enforces the provisions of the Federal Excise Act, 2005?

Federal Board of Revenue (FBR)

Ministry of Commerce

Pakistan Customs

State Bank of Pakistan

29. What type of goods are exempt from excise duty under the Federal Excise Act, 2005?

Luxury goods

Raw materials

Basic food items

Manufactured goods

30. Which of the following statements is true regarding "excise duty on imported goods" under the Federal Excise Act, 2005?

Excise duty is applied to imported goods at the point of entry into Pakistan

Excise duty on imports is waived for certain goods

Excise duty is not levied on imported goods

Excise duty on imports is determined based on the cost of production in the foreign country

31. Who is responsible for collecting excise duty in Pakistan?

Ministry of Finance

Federal Board of Revenue (FBR)

State Bank of Pakistan

Provincial Tax Authorities

32. What type of goods are typically subject to excise duty under the Federal Excise Act, 2005?

Luxury goods like perfumes and beverages

Raw agricultural produce

Public sector services

Basic food items

33. What is the rate of excise duty on tobacco products under the Federal Excise Act, 2005?

10% of the total value

No excise duty is applied to tobacco

Fixed rate

Based on quantity or value of the product

34. Which of the following is a key feature of the "Federal Excise Act, 2005" in relation to export goods?

Exporters are entitled to excise duty rebates

Exporters must pay excise duty at the point of export

Export duties are set by provincial authorities

Exported goods are exempt from excise duty

35. What is the process of collecting excise duties on imported goods under the Federal Excise Act, 2005?

Taxes are collected when goods are imported at the customs station

Taxes are collected by provincial authorities

Taxes are levied at the time of consumption

No excise duty is levied on imports

36. Which of the following sectors is primarily targeted by the Federal Excise Act, 2005 for excise duties?

Financial institutions

Exporting industries

Agricultural sector

Manufacturing of goods like beverages and cigarettes

37. What is the primary purpose of excise duty on luxury goods in Pakistan under the Federal Excise Act, 2005?

To discourage the consumption of non-essential luxury goods

To encourage the production of luxury goods

To increase exports of luxury items

To reduce the affordability of luxury goods for consumers

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Mustansar KhanLast Updated: July 8, 2025

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Federal Excise Act 2005 Pakistan Test Online

Federal Excise Act 2005 Pakistan Test Online

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