Home/FBR/Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test Online

Mustansar KhanLast Updated: July 8, 2025

Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test

Total Questions:	46
Time Allowed:	20 Minutes
Total Marks:	46
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

Please wait...

Page 1 of 2

1. What does the term 'taxable event' refer to in the context of sales tax in Pakistan?

The importation of goods

The filing of a tax return

The export of goods

The sale or transfer of goods or services that are subject to tax

2. Which of the following entities is responsible for the administration of sales tax and federal excise duty in Pakistan?

State Bank of Pakistan

Provincial Revenue Authorities

Federal Board of Revenue (FBR)

Ministry of Finance

3. Which of the following is an essential document for sales tax registration in Pakistan?

Birth certificate

Sales Tax Registration Certificate

National Identity Card

Passport

4. Which of the following taxes is imposed on the sale of goods and services in Pakistan?

Sales tax

Wealth tax

Corporate tax

Income tax

5. How often must registered businesses submit their sales tax returns in Pakistan?

Semi-annually

Monthly

Annually

Quarterly

6. Which of the following taxes are collected under the Federal Excise Act?

Personal income tax

Excise duties on tobacco and alcohol

Corporate tax

Sales tax

7. What is the penalty for tax evasion related to sales tax in Pakistan?

A warning with no consequences

Imprisonment without a fine

No penalty

A fine equal to the tax amount evaded

8. Which of the following best describes the application of sales tax in Pakistan?

Sales tax applies to both goods and services in Pakistan

Sales tax applies to agricultural products only

Sales tax only applies to goods imported from abroad

Sales tax is only applicable to exports

9. Which of the following taxes is designed to discourage the consumption of harmful goods like tobacco and alcohol?

Sales tax

Property tax

Corporate tax

Federal excise duty

10. What is the role of the FBR in implementing sales tax and federal excise duty?

To eliminate all taxes on goods

To collect sales tax and federal excise duty from taxpayers

To decide which goods should be taxed

To set tax rates only for importers

11. What is the purpose of the Sales Tax Refund System in Pakistan?

To refund sales tax paid on exported goods

To return the entire sales tax paid to businesses

To refund taxes paid on exempt goods

To reduce the tax rate for individuals

12. What happens when a taxpayer fails to submit their sales tax returns on time in Pakistan?

The taxpayer is eligible for a tax rebate

No consequences, only a warning

The taxpayer is liable for penalties and interest charges

The taxpayer is allowed to submit the return after a grace period

13. Which of the following is an example of a luxury item subject to excise duty in Pakistan?

Mobile phones

Sugar

Rice

Luxury cars

14. Which of the following goods is typically subject to federal excise duty in Pakistan?

Wheat

Mobile phones

Coal

Exported goods

15. Which of the following is a primary objective of the federal excise duty in Pakistan?

To encourage foreign investment

To promote industrial growth

To discourage the consumption of non-essential luxury goods

To exempt certain goods from taxation

16. What is the purpose of federal excise duty?

To discourage the consumption of certain luxury goods

To collect taxes from individuals’ income

To increase government revenue from local businesses

To encourage exports

17. Which of the following is a feature of federal excise duty in Pakistan?

It is applied to goods specified by the government, like tobacco

It is collected by provincial authorities

It is only applied to imported goods

It applies to all goods and services

18. Which of the following is a key feature of the sales tax credit mechanism in Pakistan?

Sales tax credits can be used to offset the tax payable on sales

Sales tax credit is only available for imports

No credit is provided for services

Only exporters are eligible for tax credit

19. What is the primary basis for determining the value of goods subject to sales tax in Pakistan?

The cost of production

The weight of the goods

The origin of the goods

The market value or selling price of the goods

20. What does the term "exempt supplies" mean in the context of sales tax?

Services provided by government entities

Goods sold in bulk

Goods and services that are not subject to sales tax

Goods sold with a discount

21. What is the role of the provincial tax authorities in relation to sales tax in Pakistan?

To handle the tax returns of large corporations

To set the sales tax rate for imported goods

To collect all federal sales taxes

To administer sales tax on services at the provincial level

22. Which of the following taxes is included in the sales tax collection system in Pakistan?

Property tax

Corporate tax

Capital gains tax

Value Added Tax (VAT)

23. How does the FBR ensure compliance with federal excise duty payments?

By reducing taxes for businesses

By offering discounts to compliant taxpayers

By conducting audits and inspections

By increasing the price of exempt goods

24. Which of the following is NOT considered taxable under the Sales Tax Act, 1990 in Pakistan?

Import of goods

Retail sale of goods

Manufacturing of goods

Export of services

25. How does the Federal Board of Revenue (FBR) assist in the implementation of sales tax in Pakistan?

By offering loans to businesses for tax payments

By enforcing tax audits, processing returns, and ensuring compliance

By providing exemptions from tax for new businesses

By granting tax amnesty programs for importers

Page 2 of 2

26. Which of the following goods is typically exempt from federal excise duty in Pakistan?

Certain agricultural products

Alcoholic beverages

Petroleum products

Tobacco products

27. What does the term "input tax credit" mean in the context of sales tax?

A deduction available to businesses for tax paid on purchases

A special credit for foreign investors

A tax rate reduction for low-income businesses

A tax refund for taxpayers who make mistakes on their filings

28. What is the procedure for registering for sales tax in Pakistan?

Only businesses importing goods need to register

Individuals need to register at their local bank

No registration is required for businesses under a certain income level

Businesses must apply online through the FBR portal

29. How does sales tax affect consumers?

It is not applicable to consumers in Pakistan

It is only paid by businesses

It is paid directly by the consumer to the government

It is included in the price of goods and services purchased by the consumer

30. What is the process for registering for federal excise duty in Pakistan?

No registration is required for excise duty

Any individual can register online

Businesses must apply for excise duty registration through the FBR

Only multinational companies are eligible for excise duty registration

31. What is the main function of the Sales Tax Act, 1990?

To regulate customs duties

To regulate income taxes

To define the scope and procedures for sales tax collection

To impose tax on profits

32. Which of the following taxes is typically exempt from federal excise duty in Pakistan?

Tobacco

Alcohol

Medicines

Petroleum

33. What is the scope of the Sales Tax Act, 1990 in Pakistan?

It only applies to exports

It only applies to the import of goods

It only applies to goods

It applies to both goods and services

34. What is the FBR’s role in controlling tax evasion in the context of sales tax?

To enforce penalties, audits, and investigations

To encourage tax avoidance strategies

To reduce taxes for defaulters

To offer amnesty programs for evaders

35. What is the standard rate of sales tax in Pakistan?

17%

25%

10%

36. How does Pakistan's Sales Tax Act define the term 'supply'?

The sale or transfer of goods or services

The import of goods from another country

The declaration of income by a taxpayer

The transportation of goods

37. Which of the following types of sales is exempt from sales tax in Pakistan?

Sales of luxury goods

Sales of property

Sales of alcoholic beverages

Sales of medicines

38. How are goods that are not subject to sales tax categorized in Pakistan?

They are categorized as non-taxable

They are categorized as taxable supplies

They are categorized as luxury items

They are categorized as exempt supplies

39. Which of the following is an example of a taxable service under Pakistan's sales tax law?

Legal services provided by a law firm

Government healthcare services

Agricultural production services

Public education services

40. Which of the following is an example of goods subject to federal excise duty?

Public services

Petroleum products

Agricultural products

Exported machinery

41. Which of the following is a key feature of the Federal Excise Act, 2005?

It regulates the foreign exchange market

It imposes duties on goods specified by the government

It deals with the registration of businesses

It sets tax rates for all income earners

42. What is the term used for the tax paid on the production, sale, or consumption of goods in Pakistan?

Sales tax

Income tax

Property tax

Corporate tax

43. Which of the following goods is subject to excise duty in Pakistan?

Books

Soft drinks

Wheat

Livestock

44. Which of the following entities is eligible for sales tax refund in Pakistan?

Small retail businesses

Exporters of goods

Non-governmental organizations (NGOs)

Individuals filing income tax returns

45. Which of the following is NOT subject to sales tax in Pakistan?

Agricultural products

Goods sold within the country

Exported goods

Luxury goods

46. What is the rate of excise duty on petroleum products in Pakistan?

Varies by product

10%

15%

You Can Learn and Gain more Knowledge through our Online Quiz and Testing system Just Search your desired Preparation subject at Gotest.

Basic Concepts of Taxation Test Online
Federal Board of Revenue (FBR) Function and Role Test Online
Pakistan Customs Role, Functions and Laws Test Online
Key Economic Terms Test Online (Basic Economic Indicators)
Fiscal Policy of Pakistan Test Online
Tax Administration and Reforms in Pakistan Test Online
Sales Tax Act 1990 Pakistan Test Online
Federal Excise Act 2005 Pakistan Test Online
Income Tax Ordinance 2001 Pakistan Test Online
Basic Concepts of Auditing and Accounting Test Online

Mustansar KhanLast Updated: July 8, 2025

Facebook Twitter Reddit WhatsApp Share via Email Print

Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test

You Might Also Like

Mustansar Khan

Leave a Reply Cancel reply

Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test

You Might Also Like

Mustansar Khan

Your Related

Financial Management Basics Test Online

Federal Board of Revenue (FBR) Function and Role Test Online

Fiscal Policy of Pakistan Test Online

Basic Concepts of Taxation Test Online

Basic Concepts of Auditing and Accounting Test Online

Sales Tax Act 1990 Pakistan Test Online

Leave a Reply Cancel reply