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

Goods for export

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

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

State Bank of Pakistan

Provincial Tax Authorities

Federal Board of Revenue (FBR)

Ministry of Finance

3. 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 maintain records of production and sales

They must increase the price of goods sold

They must provide export documentation

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

Finished goods like cosmetics

Imported raw material

Real estate properties

Agricultural products

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

Goods that are not taxed at all

Goods that are sold without any tax

Goods that are specifically subject to excise duties by the law

Goods exported out of Pakistan

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

Textiles

Tobacco and cigarettes

Basic food items

Raw materials used in manufacturing

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

Agricultural sector

Exporting industries

Manufacturing of goods like beverages and cigarettes

Financial institutions

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

Tax paid on business capital

Tax collected on the sale of excisable goods and services

Tax on income

Tax on exports

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

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

Excise duty is not levied on imported goods

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

Excise duty on imports is waived for certain goods

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

To impose duties on specific goods and services

To regulate property tax rates

To regulate public sector wages

To monitor business profits

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

Only applicable to government departments

Claim it through an online form without documentation

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

Refunds are automatically provided

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

Import of machinery

Transport of goods

Manufacturing of excisable goods

Export of raw materials

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

No tax is applied to luxury goods

A fixed rate of 5%

A higher tax rate compared to regular goods

A tax rate based on the market value

14. 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

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

Export duties are set by provincial authorities

Exporters must pay excise duty at the point of export

Exporters are entitled to excise duty rebates

Exported goods are exempt from excise duty

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

Agricultural farming

Importing goods

Providing government services

Manufacturing goods like alcohol or cigarettes

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

Manufactured goods

Luxury goods

Raw materials

Basic food items

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

Ministry of Commerce

State Bank of Pakistan

Pakistan Customs

Federal Board of Revenue (FBR)

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

Collecting and administering excise duties

Regulating the financial sector

Setting import duties for goods

Approving tax exemptions for all industries

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

A tax refund

A reduction in tax rates

A fine or imprisonment

A warning issued by FBR

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

Petroleum products

Tobacco products

Household goods

Alcoholic beverages

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

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

A document issued by the FBR for tax payments

23. 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 corporate profits

Tax on income

Tax on international trade

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

Sales tax registration certificate

Excise duty registration number

Business registration certificate

Import-export license

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

Alcoholic beverages

Electronic components

Textiles

Agricultural products

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26. 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

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

To allow individuals to avoid excise duty

To provide tax benefits for exports

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

To reduce the tax rate for large businesses

28. 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

29. 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 increase exports of luxury items

To reduce the affordability of luxury goods for consumers

To encourage the production of luxury goods

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

A fixed amount based on quantity

There is no excise duty on tobacco products

A flat rate regardless of quantity

A percentage of the retail price

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

10% of the total value

Based on quantity or value of the product

No excise duty is applied to tobacco

Fixed rate

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

Goods imported into Pakistan

Goods produced locally

Goods and services on which excise duty is applicable

Any good or service exempt from excise duty

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

A document certifying the exemption from excise duty

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

A document issued by FBR to all taxpayers

A receipt for the payment of income tax

34. 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

No excise duty is levied on imports

Taxes are collected by provincial authorities

Taxes are levied at the time of consumption

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

Tax collected on goods exported out of the country

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

Tax paid by consumers on goods purchased

Tax levied on the final sale of goods to consumers

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

Basic food items

Raw agricultural produce

Public sector services

Luxury goods like perfumes and beverages

37. 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

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Mustansar KhanLast Updated: July 8, 2025

Federal Excise Act 2005 Pakistan Test Online

Federal Excise Act 2005 Pakistan Test Online

Federal Excise Act 2005 Pakistan Test

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