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 is the procedure for registering for sales tax in Pakistan?

No registration is required for businesses under a certain income level

Individuals need to register at their local bank

Only businesses importing goods need to register

Businesses must apply online through the FBR portal

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

Sales tax

Federal excise duty

Corporate tax

Property tax

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

It imposes duties on goods specified by the government

It deals with the registration of businesses

It sets tax rates for all income earners

It regulates the foreign exchange market

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

Corporate tax

Income tax

Sales tax

Wealth tax

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

Soft drinks

Books

Wheat

Livestock

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

National Identity Card

Passport

Birth certificate

Sales Tax Registration Certificate

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

A fine equal to the tax amount evaded

A warning with no consequences

Imprisonment without a fine

No penalty

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

State Bank of Pakistan

Federal Board of Revenue (FBR)

Ministry of Finance

Provincial Revenue Authorities

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

Exported machinery

Petroleum products

Agricultural products

Public services

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

Tobacco products

Alcoholic beverages

Certain agricultural products

Petroleum products

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

Only exporters are eligible for tax credit

No credit is provided for services

Sales tax credit is only available for imports

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

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

25%

17%

10%

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

Sales of luxury goods

Sales of alcoholic beverages

Sales of medicines

Sales of property

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

10%

15%

Varies by product

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

Wheat

Exported goods

Coal

Mobile phones

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

To administer sales tax on services at the provincial level

To collect all federal sales taxes

To handle the tax returns of large corporations

To set the sales tax rate for imported goods

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

To collect sales tax and federal excise duty from taxpayers

To eliminate all taxes on goods

To decide which goods should be taxed

To set tax rates only for importers

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

It only applies to exports

It only applies to goods

It applies to both goods and services

It only applies to the import of goods

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

Exported goods

Luxury goods

Goods sold within the country

Agricultural products

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

To promote industrial growth

To exempt certain goods from taxation

To encourage foreign investment

To discourage the consumption of non-essential luxury goods

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

Sales tax only applies to goods imported from abroad

Sales tax applies to both goods and services in Pakistan

Sales tax applies to agricultural products only

Sales tax is only applicable to exports

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

By reducing taxes for businesses

By increasing the price of exempt goods

By offering discounts to compliant taxpayers

By conducting audits and inspections

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

Petroleum

Medicines

Tobacco

Alcohol

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

It is only applied to imported goods

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

It is collected by provincial authorities

It applies to all goods and services

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

The declaration of income by a taxpayer

The import of goods from another country

The transportation of goods

The sale or transfer of goods or services

Page 2 of 2

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

Sales tax

Excise duties on tobacco and alcohol

Corporate tax

Personal income tax

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

The filing of a tax return

The importation of goods

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

The export of goods

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

Manufacturing of goods

Export of services

Retail sale of goods

Import of goods

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

Individuals filing income tax returns

Small retail businesses

Exporters of goods

Non-governmental organizations (NGOs)

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

Government healthcare services

Legal services provided by a law firm

Agricultural production services

Public education services

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

To refund taxes paid on exempt goods

To reduce the tax rate for individuals

To return the entire sales tax paid to businesses

To refund sales tax paid on exported goods

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

To enforce penalties, audits, and investigations

To offer amnesty programs for evaders

To reduce taxes for defaulters

To encourage tax avoidance strategies

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

Semi-annually

Monthly

Quarterly

Annually

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

Capital gains tax

Value Added Tax (VAT)

Property tax

Corporate tax

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

By enforcing tax audits, processing returns, and ensuring compliance

By granting tax amnesty programs for importers

By providing exemptions from tax for new businesses

By offering loans to businesses for tax payments

36. What is the purpose of federal excise duty?

To discourage the consumption of certain luxury goods

To collect taxes from individuals’ income

To encourage exports

To increase government revenue from local businesses

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

Property tax

Income tax

Corporate tax

Sales tax

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

They are categorized as exempt supplies

They are categorized as luxury items

They are categorized as taxable supplies

They are categorized as non-taxable

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

The taxpayer is eligible for a tax rebate

The taxpayer is liable for penalties and interest charges

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

No consequences, only a warning

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

The market value or selling price of the goods

The weight of the goods

The cost of production

The origin of the goods

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

Businesses must apply for excise duty registration through the FBR

Any individual can register online

Only multinational companies are eligible for excise duty registration

No registration is required for excise duty

42. How does sales tax affect consumers?

It is paid directly by the consumer to the government

It is only paid by businesses

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

It is not applicable to consumers in Pakistan

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

Goods sold in bulk

Services provided by government entities

Goods sold with a discount

Goods and services that are not subject to sales tax

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

To regulate customs duties

To define the scope and procedures for sales tax collection

To regulate income taxes

To impose tax on profits

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

A tax rate reduction for low-income businesses

A deduction available to businesses for tax paid on purchases

A special credit for foreign investors

A tax refund for taxpayers who make mistakes on their filings

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

Luxury cars

Rice

Sugar

Mobile phones

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

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

Related Posts

Mustansar Khan

Leave a Reply Cancel reply