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

A code used to identify businesses only

A unique number assigned to each taxpayer for tax purposes

A code to identify tax exempt goods

A number for foreign nationals only

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

Introduction of VAT

Increase in corporate tax rates

Tax amnesty schemes

Reduction of personal income tax rates

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

The tax rate is the same for all income levels

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

Taxes are only applied to wealth

Tax rates decrease as income rises

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

To offer tax credits to taxpayers

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

To increase the number of audits conducted

To reduce government intervention in tax collection

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

Names of all registered taxpayers and their tax obligations

List of all goods imported into Pakistan

Number of audits conducted by the tax authorities

Number of businesses receiving tax exemptions

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

Ministry of Finance

Federal Board of Revenue (FBR)

Pakistan Bureau of Statistics

State Bank of Pakistan

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

Wealth tax

Corporate tax

Sales tax

Income tax

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

To reduce the taxes owed by individuals

To identify new tax rates

To provide tax exemptions to businesses

To ensure taxpayers comply with the tax laws and regulations

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

Timely collection of taxes and effective enforcement

Low taxpayer awareness

High complexity in filing taxes

Fewer audits and investigations

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

To collect taxes at the source from transactions and payments

To provide exemptions to low-income individuals

To collect tax directly from large businesses only

To eliminate the need for tax returns

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

Paying taxes before the deadline

Correctly completing tax forms

Reporting all taxable income

Incorrectly reporting income or expenses

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

To simplify tax collection processes and improve compliance

To reduce the number of taxpayers

To increase government spending

To eliminate foreign tax obligations

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

Reduced public debt

Increased tax evasion

Improved government spending capabilities

Increased inflation

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

Elimination of tax on agricultural products

Introduction of progressive taxation

The reduction of sales tax rates

The digitalization of tax records and filing systems

15. What is "tax evasion"?

Avoiding tax payment by illegally concealing income or inflating expenses

Reporting the correct income to tax authorities

Legally reducing tax liability through deductions

Paying taxes early to receive a discount

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

Property tax

Wealth tax

Sales tax

Income tax

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

To manage tax audits

To increase taxes on foreign goods

To resolve disputes between taxpayers and tax authorities

To offer tax exemptions to businesses

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

Reducing penalties for non-compliance

Increasing the number of taxes levied

Introducing self-assessment systems for taxpayers

Decreasing the frequency of audits

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

Improved efficiency in tax collection and increased revenue

Lower tax rates for businesses only

Increased government spending on military projects

Reduced penalties for tax evasion

20. 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

Excessive subsidies to certain industries

Over-taxation of businesses

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

It is a tax imposed on businesses only

It reduces the tax burden for taxpayers

It is a form of indirect taxation

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

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

To focus on corporate taxation only

To simplify the tax collection process and increase revenue

To increase subsidies for exporters

To reduce the number of taxable individuals

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

Implementation of self-assessment systems and digital tax filing

Reduced taxes for multinational corporations

Increased customs duties on all imports

Introduction of a uniform tax rate across all sectors

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

Sales tax

Income tax

Wealth tax

Property tax

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

Income from agricultural activities

Income from government bonds

Income from foreign investments

All of the above

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

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

To encourage tax evasion

To increase import duties on foreign goods

To eliminate all taxes for certain sectors

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

Avoiding the payment of taxes altogether

Misreporting business expenses to evade taxes

Underreporting income to reduce tax liability

Claiming legal deductions to reduce taxable income

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

Only large corporations can use E-filing

The FBR handles tax calculations manually

Taxpayers can file returns electronically through the FBR portal

Taxpayers must file paper returns only

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

Widespread tax evasion and non-compliance

High inflation rates

Increasing foreign investment

High levels of tax compliance

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

Filing tax returns on paper

Submitting tax forms electronically through the FBR portal

Filing tax returns through a manual process

Receiving tax rebates through an online system

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

The amount of money collected from businesses

The value of imported goods

The rate at which taxes are levied

The total number of taxable individuals and businesses

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

To enforce tax collection

To audit taxpayers

To propose recommendations for improving the taxation system

To grant tax exemptions

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

To increase the number of taxable individuals

To provide tax refunds to businesses

To identify errors or discrepancies in tax filings and enforce compliance

To regulate foreign investments

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

National Identity Card

Taxpayer Identification Number (TIN)

Social security number

Business license

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

Increasing fines for non-compliance

Raising tax rates for small businesses

Reducing the number of audits conducted

Introducing the "One-Window" tax registration system

36. 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

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

To manage tax exemptions

To collect taxes from foreign nationals

To provide a unified platform for businesses to make tax payments

To track public sector employment rates

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

Corporate tax

Excise duty

Sales tax

Withholding tax

39. 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 ensure the correct distribution of government funds

To control the national debt

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

Progressive tax

E-filing

Withholding tax

Self-assessment

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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

Tax Administration and Reforms in Pakistan Test

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