Home/FBR/Federal Excise Act 2005 Pakistan Test Online

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

To provide tax benefits for exports

To reduce the tax rate for large businesses

To allow individuals to avoid excise duty

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

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

Manufacturing of goods like beverages and cigarettes

Financial institutions

Exporting industries

Agricultural sector

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

State Bank of Pakistan

Pakistan Customs

Federal Board of Revenue (FBR)

Ministry of Commerce

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

Raw materials

Manufactured goods

Basic food items

Luxury goods

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

There is no excise duty on tobacco products

A flat rate regardless of quantity

A fixed amount based on quantity

A percentage of the retail price

6. 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 is not levied on imported goods

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

Excise duty on imports is waived for certain goods

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

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

A receipt for excise duties paid at customs

A document issued by the FBR for tax payments

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

To regulate property tax rates

To regulate public sector wages

To monitor business profits

To impose duties on specific goods and services

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

Transport of goods

Export of raw materials

Manufacturing of excisable goods

Import of machinery

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

Tax on income

Tax imposed on goods and services considered harmful or luxury

Tax on corporate profits

Tax on international trade

11. 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

Export duties are set by provincial authorities

Exported goods are exempt from excise duty

Exporters must pay excise duty at the point of export

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

Only applicable to government departments

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

Claim it through an online form without documentation

Refunds are automatically provided

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

Tax on income

Tax collected on the sale of excisable goods and services

Tax paid on business capital

Tax on exports

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

The amount of excise duty that businesses can claim back

The tax paid by consumers

A tax rebate on imported goods

A special tax exemption for large companies

15. Which of the following is NOT subject to excise duty under the Federal Excise Act, 2005?

Petroleum products

Alcoholic beverages

Household goods

Tobacco products

16. 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

No excise duty is levied on imports

Taxes are levied at the time of consumption

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

A document issued by FBR to all taxpayers

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

A document certifying the exemption from excise duty

A receipt for the payment of income tax

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

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

Tax collected on goods exported out of the country

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

They must submit quarterly income tax returns

They must provide export documentation

They must maintain records of production and sales

They must increase the price of goods sold

20. 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

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

Luxury vehicles

Goods exported outside Pakistan

Manufactured goods like electronics

Tobacco products

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

Based on the retail price of the goods

Based on the cost of production

A fixed amount per unit of the product

By determining the market value of the goods

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

Textiles

Basic food items

Raw materials used in manufacturing

Tobacco and cigarettes

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

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

Goods for export

Goods exempt from sales tax

Goods that are exempt from government regulation

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

Property tax

Income tax

Excise duty on alcohol and tobacco products

Sales tax on goods

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26. 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

Regulating the financial sector

Collecting and administering excise duties

Setting import duties for goods

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

A higher tax rate compared to regular goods

A tax rate based on the market value

A fixed rate of 5%

No tax is applied to luxury goods

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

Imported raw material

Real estate properties

Finished goods like cosmetics

Agricultural products

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

Based on quantity or value of the product

No excise duty is applied to tobacco

10% of the total value

Fixed rate

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

To increase exports of luxury items

To discourage the consumption of non-essential luxury goods

To reduce the affordability of luxury goods for consumers

To encourage the production of luxury goods

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

Sales tax registration certificate

Business registration certificate

Import-export license

Excise duty registration number

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

Electronic components

Alcoholic beverages

Agricultural products

Textiles

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

Any good or service exempt from excise duty

Goods and services on which excise duty is applicable

Goods produced locally

Goods imported into Pakistan

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

Providing government services

Importing goods

Manufacturing goods like alcohol or cigarettes

Agricultural farming

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

Provincial Tax Authorities

State Bank of Pakistan

Ministry of Finance

Federal Board of Revenue (FBR)

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

Goods that are specifically subject to excise duties by the law

Goods that are sold without any tax

Goods that are not taxed at all

Goods exported out of Pakistan

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

A fine or imprisonment

A warning issued by FBR

A tax refund

A reduction in tax rates

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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

Federal Excise Act 2005 Pakistan Test

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