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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 is an example of indirect tax in Pakistan?

Property tax

Sales tax

Wealth tax

Income tax

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

Fewer audits and investigations

Timely collection of taxes and effective enforcement

High complexity in filing taxes

Low taxpayer awareness

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

To eliminate all taxes for certain sectors

To encourage tax evasion

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

To increase import duties on foreign goods

4. Which of the following measures is often part of tax reforms aimed at improving tax collection efficiency?

Reducing penalties for non-compliance

Introducing self-assessment systems for taxpayers

Decreasing the frequency of audits

Increasing the number of taxes levied

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

Names of all registered taxpayers and their tax obligations

Number of businesses receiving tax exemptions

List of all goods imported into Pakistan

Number of audits conducted by the tax authorities

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

The high tax rates on income

Low taxpayer compliance and high tax evasion

Over-taxation of businesses

Excessive subsidies to certain industries

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

It reduces the tax burden for taxpayers

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

It is a form of indirect taxation

It is a tax imposed on businesses only

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

Tax rates decrease as income rises

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

The tax rate is the same for all income levels

Taxes are only applied to wealth

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

To reduce the number of taxable individuals

To increase subsidies for exporters

To focus on corporate taxation only

To simplify the tax collection process and increase revenue

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

To audit taxpayers

To propose recommendations for improving the taxation system

To enforce tax collection

To grant tax exemptions

11. What is "tax evasion"?

Reporting the correct income to tax authorities

Avoiding tax payment by illegally concealing income or inflating expenses

Paying taxes early to receive a discount

Legally reducing tax liability through deductions

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

To collect tax directly from large businesses only

To collect taxes at the source from transactions and payments

To provide exemptions to low-income individuals

To eliminate the need for tax returns

13. 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

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

Filing tax returns through a manual process

Submitting tax forms electronically through the FBR portal

Receiving tax rebates through an online system

Filing tax returns on paper

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

Withholding tax

Corporate tax

Sales tax

Excise duty

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

Claiming legal deductions to reduce taxable income

Avoiding the payment of taxes altogether

Underreporting income to reduce tax liability

Misreporting business expenses to evade taxes

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

To manage tax audits

To offer tax exemptions to businesses

To increase taxes on foreign goods

To resolve disputes between taxpayers and tax authorities

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

Lower tax rates for businesses only

Improved efficiency in tax collection and increased revenue

Reduced penalties for tax evasion

Increased government spending on military projects

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

The rate at which taxes are levied

The total number of taxable individuals and businesses

The amount of money collected from businesses

The value of imported goods

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

Increasing foreign investment

Widespread tax evasion and non-compliance

High levels of tax compliance

High inflation rates

21. 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

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

A code to identify tax exempt goods

A code used to identify businesses only

A unique number assigned to each taxpayer for tax purposes

A number for foreign nationals only

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

Reducing the number of audits conducted

Increasing fines for non-compliance

Introducing the "One-Window" tax registration system

Raising tax rates for small businesses

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

E-filing

Withholding tax

Self-assessment

Progressive tax

25. 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

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

Reduced public debt

Improved government spending capabilities

Increased tax evasion

Increased inflation

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

To regulate foreign investments

To identify errors or discrepancies in tax filings and enforce compliance

To increase the number of taxable individuals

To provide tax refunds to businesses

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

Income tax

Property tax

Sales tax

Wealth tax

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

To reduce government intervention in tax collection

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

To increase the number of audits conducted

To offer tax credits to taxpayers

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

To enforce tax compliance through audits and enforcement actions

To collect taxes from citizens

To control the national debt

To ensure the correct distribution of government funds

31. 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

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

Reduced taxes for multinational corporations

Increased customs duties on all imports

Implementation of self-assessment systems and digital tax filing

Introduction of a uniform tax rate across all sectors

33. 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

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

Income from agricultural activities

All of the above

Income from government bonds

Income from foreign investments

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

Elimination of tax on agricultural products

The reduction of sales tax rates

Introduction of progressive taxation

The digitalization of tax records and filing systems

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

Increase in corporate tax rates

Tax amnesty schemes

Introduction of VAT

Reduction of personal income tax rates

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

Corporate tax

Income tax

Sales tax

Wealth tax

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

To collect and manage taxes for the government

To determine foreign exchange rates

To provide government loans to businesses

To regulate trade policies

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

National Identity Card

Business license

Taxpayer Identification Number (TIN)

Social security number

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

Pakistan Bureau of Statistics

Ministry of Finance

State Bank of Pakistan

Federal Board of Revenue (FBR)

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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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Tax Administration and Reforms in Pakistan Test Online

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