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Tax Administration and Reforms in Pakistan Test Online

Mustansar KhanLast Updated: July 8, 2025

Tax Administration and Reforms in Pakistan Test Online

Tax Administration and Reforms in Pakistan Test

Total Questions:	40
Time Allowed:	20 Minutes
Total Marks:	40
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 measures is often part of tax reforms aimed at improving tax collection efficiency?

Increasing the number of taxes levied

Introducing self-assessment systems for taxpayers

Reducing penalties for non-compliance

Decreasing the frequency of audits

2. Which of the following is an example of an "indirect tax" in Pakistan?

Income tax

Wealth tax

Corporate tax

Sales tax

3. What is the function of the "Tax Reforms Commission" in Pakistan?

To propose recommendations for improving the taxation system

To audit taxpayers

To enforce tax collection

To grant tax exemptions

4. Which of the following is an example of indirect tax in Pakistan?

Income tax

Property tax

Sales tax

Wealth tax

5. Which of the following is a key challenge faced by tax administrators in Pakistan?

High inflation rates

Widespread tax evasion and non-compliance

Increasing foreign investment

High levels of tax compliance

6. Which of the following is an example of a "tax exemption" in Pakistan?

Income from government bonds

Income from agricultural activities

Income from foreign investments

All of the above

7. What is the objective of "tax audits" in Pakistan’s tax administration system?

To regulate foreign investments

To provide tax refunds to businesses

To identify errors or discrepancies in tax filings and enforce compliance

To increase the number of taxable individuals

8. What is the key benefit of implementing tax reforms in Pakistan?

Increased inflation

Reduced public debt

Improved government spending capabilities

Increased tax evasion

9. What is the term for the tax collected at the source of income, typically from employees’ wages?

Excise duty

Sales tax

Corporate tax

Withholding tax

10. Which of the following is NOT a direct tax in Pakistan?

Income tax

Wealth tax

Sales tax

Property tax

11. What is the key feature of a "progressive tax system"?

The tax rate is the same for all income levels

Tax rates decrease as income rises

Taxes are only applied to wealth

Higher income earners pay a higher percentage of their income in taxes

12. Which of the following is the primary purpose of tax administration?

To collect taxes from citizens

To control the national debt

To enforce tax compliance through audits and enforcement actions

To ensure the correct distribution of government funds

13. Which of the following is NOT a tax collection method in Pakistan’s tax administration?

Withholding tax

Self-assessment

E-filing

Progressive tax

14. Which of the following is a key feature of Pakistan’s tax administration reforms?

Introduction of a uniform tax rate across all sectors

Reduced taxes for multinational corporations

Increased customs duties on all imports

Implementation of self-assessment systems and digital tax filing

15. What is the objective of introducing the "Self-Assessment Scheme" in Pakistan’s tax system?

To increase the number of audits conducted

To make taxpayers fully responsible for reporting their income and calculating their taxes

To offer tax credits to taxpayers

To reduce government intervention in tax collection

16. Which of the following is an example of a non-compliant taxpayer action that would be identified during a tax audit?

Correctly completing tax forms

Reporting all taxable income

Paying taxes before the deadline

Incorrectly reporting income or expenses

17. What is meant by "taxpayer identification number" (TIN) in Pakistan?

A number for foreign nationals only

A code used to identify businesses only

A code to identify tax exempt goods

A unique number assigned to each taxpayer for tax purposes

18. Which of the following tax reforms was introduced to encourage the formalization of businesses in Pakistan?

Increase in corporate tax rates

Tax amnesty schemes

Reduction of personal income tax rates

Introduction of VAT

19. What does the "Tax Register" maintained by the FBR include?

List of all goods imported into Pakistan

Names of all registered taxpayers and their tax obligations

Number of businesses receiving tax exemptions

Number of audits conducted by the tax authorities

20. What is "tax evasion"?

Avoiding tax payment by illegally concealing income or inflating expenses

Reporting the correct income to tax authorities

Paying taxes early to receive a discount

Legally reducing tax liability through deductions

21. What is the significance of the "Withholding Tax" system in Pakistan’s tax administration?

It is a tax imposed on businesses only

It allows for the collection of tax at the source of income

It reduces the tax burden for taxpayers

It is a form of indirect taxation

22. What is the primary purpose of the "Tax Ombudsman" in Pakistan?

To manage tax audits

To resolve disputes between taxpayers and tax authorities

To increase taxes on foreign goods

To offer tax exemptions to businesses

23. Which government initiative helps businesses comply with tax regulations in Pakistan?

Reducing the number of audits conducted

Introducing the "One-Window" tax registration system

Raising tax rates for small businesses

Increasing fines for non-compliance

24. What is the objective of Pakistan’s tax reform strategy?

To focus on corporate taxation only

To reduce the number of taxable individuals

To simplify the tax collection process and increase revenue

To increase subsidies for exporters

25. Which of the following is a feature of the "E-filing" system for tax returns in Pakistan?

The FBR handles tax calculations manually

Taxpayers can file returns electronically through the FBR portal

Taxpayers must file paper returns only

Only large corporations can use E-filing

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26. Which of the following is a characteristic of an effective tax administration system?

Low taxpayer awareness

Timely collection of taxes and effective enforcement

High complexity in filing taxes

Fewer audits and investigations

27. What is the role of tax reforms in improving tax administration in Pakistan?

To reduce the number of taxpayers

To increase government spending

To eliminate foreign tax obligations

To simplify tax collection processes and improve compliance

28. Which department is responsible for enforcing tax laws in Pakistan?

Pakistan Bureau of Statistics

State Bank of Pakistan

Federal Board of Revenue (FBR)

Ministry of Finance

29. What is the key function of the Federal Board of Revenue (FBR) in Pakistan?

To collect and manage taxes for the government

To regulate trade policies

To determine foreign exchange rates

To provide government loans to businesses

30. What is the role of the "Withholding Tax" system in Pakistan?

To collect taxes at the source from transactions and payments

To eliminate the need for tax returns

To provide exemptions to low-income individuals

To collect tax directly from large businesses only

31. What is the purpose of "Tax Amnesty Schemes" in Pakistan?

To allow taxpayers to declare undisclosed income and pay taxes at reduced rates

To eliminate all taxes for certain sectors

To encourage tax evasion

To increase import duties on foreign goods

32. Which of the following tax reforms was introduced to enhance tax compliance in Pakistan?

The digitalization of tax records and filing systems

Introduction of progressive taxation

The reduction of sales tax rates

Elimination of tax on agricultural products

33. Which of the following is an example of "tax avoidance"?

Underreporting income to reduce tax liability

Claiming legal deductions to reduce taxable income

Avoiding the payment of taxes altogether

Misreporting business expenses to evade taxes

34. What is meant by "e-filing" in Pakistan’s tax administration?

Submitting tax forms electronically through the FBR portal

Filing tax returns through a manual process

Receiving tax rebates through an online system

Filing tax returns on paper

35. What is the main purpose of a tax audit in Pakistan?

To provide tax exemptions to businesses

To ensure taxpayers comply with the tax laws and regulations

To reduce the taxes owed by individuals

To identify new tax rates

36. Which of the following tax-related documents is essential for registering for tax in Pakistan?

Taxpayer Identification Number (TIN)

Social security number

Business license

National Identity Card

37. What is the role of the "Centralized Payment System" in tax administration?

To provide a unified platform for businesses to make tax payments

To collect taxes from foreign nationals

To track public sector employment rates

To manage tax exemptions

38. What is the primary benefit of tax reforms in Pakistan?

Lower tax rates for businesses only

Improved efficiency in tax collection and increased revenue

Increased government spending on military projects

Reduced penalties for tax evasion

39. Which of the following is the main challenge in Pakistan’s tax administration?

Excessive subsidies to certain industries

The high tax rates on income

Over-taxation of businesses

Low taxpayer compliance and high tax evasion

40. What does "tax base" refer to in the context of tax administration?

The rate at which taxes are levied

The value of imported goods

The amount of money collected from businesses

The total number of taxable individuals and businesses

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Mustansar KhanLast Updated: July 8, 2025

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Tax Administration and Reforms in Pakistan Test Online

Tax Administration and Reforms in Pakistan Test Online

Tax Administration and Reforms in Pakistan Test

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