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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 a key feature of Pakistan’s tax administration reforms?

Increased customs duties on all imports

Implementation of self-assessment systems and digital tax filing

Reduced taxes for multinational corporations

Introduction of a uniform tax rate across all sectors

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

A number for foreign nationals only

A code to identify tax exempt goods

A unique number assigned to each taxpayer for tax purposes

A code used to identify businesses only

3. 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

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

To provide government loans to businesses

To regulate trade policies

To collect and manage taxes for the government

To determine foreign exchange rates

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

To provide tax exemptions to businesses

To identify new tax rates

To ensure taxpayers comply with the tax laws and regulations

To reduce the taxes owed by individuals

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

High levels of tax compliance

High inflation rates

Increasing foreign investment

Widespread tax evasion and non-compliance

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

The total number of taxable individuals and businesses

The value of imported goods

The rate at which taxes are levied

The amount of money collected from businesses

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

To eliminate foreign tax obligations

To increase government spending

To reduce the number of taxpayers

To simplify tax collection processes and improve compliance

9. 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

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

State Bank of Pakistan

Ministry of Finance

Pakistan Bureau of Statistics

Federal Board of Revenue (FBR)

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

E-filing

Self-assessment

Progressive tax

Withholding tax

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

Number of audits conducted by the tax authorities

List of all goods imported into Pakistan

Names of all registered taxpayers and their tax obligations

Number of businesses receiving tax exemptions

13. 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

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

Social security number

Business license

National Identity Card

Taxpayer Identification Number (TIN)

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

Fewer audits and investigations

Low taxpayer awareness

Timely collection of taxes and effective enforcement

High complexity in filing taxes

16. What is "tax evasion"?

Legally reducing tax liability through deductions

Paying taxes early to receive a discount

Avoiding tax payment by illegally concealing income or inflating expenses

Reporting the correct income to tax authorities

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

Introduction of VAT

Increase in corporate tax rates

Reduction of personal income tax rates

Tax amnesty schemes

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

To increase the number of taxable individuals

To identify errors or discrepancies in tax filings and enforce compliance

To regulate foreign investments

To provide tax refunds to businesses

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

To manage tax exemptions

To track public sector employment rates

To provide a unified platform for businesses to make tax payments

To collect taxes from foreign nationals

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

All of the above

Income from foreign investments

Income from government bonds

Income from agricultural activities

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

Introduction of progressive taxation

Elimination of tax on agricultural products

The digitalization of tax records and filing systems

The reduction of sales tax rates

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

Excessive subsidies to certain industries

The high tax rates on income

Low taxpayer compliance and high tax evasion

Over-taxation of businesses

23. 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

Decreasing the frequency of audits

Introducing self-assessment systems for taxpayers

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

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

It is a tax imposed on businesses only

It reduces the tax burden for taxpayers

It is a form of indirect taxation

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

To collect taxes from citizens

To ensure the correct distribution of government funds

To enforce tax compliance through audits and enforcement actions

To control the national debt

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

To encourage tax evasion

To eliminate all taxes for certain sectors

To increase import duties on foreign goods

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

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

Income tax

Property tax

Sales tax

Wealth tax

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

Reduced public debt

Increased inflation

Improved government spending capabilities

Increased tax evasion

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

To increase taxes on foreign goods

To manage tax audits

To offer tax exemptions to businesses

To resolve disputes between taxpayers and tax authorities

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

Filing tax returns on paper

Receiving tax rebates through an online system

Submitting tax forms electronically through the FBR portal

Filing tax returns through a manual process

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

Excise duty

Withholding tax

Corporate tax

Sales tax

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

The FBR handles tax calculations manually

Taxpayers must file paper returns only

Only large corporations can use E-filing

Taxpayers can file returns electronically through the FBR portal

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

Sales tax

Income tax

Wealth tax

Property tax

34. 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

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

To grant tax exemptions

To propose recommendations for improving the taxation system

To enforce tax collection

To audit taxpayers

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

Misreporting business expenses to evade taxes

Avoiding the payment of taxes altogether

Underreporting income to reduce tax liability

Claiming legal deductions to reduce taxable income

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

Tax rates decrease as income rises

Taxes are only applied to wealth

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

The tax rate is the same for all income levels

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

Reduced penalties for tax evasion

Increased government spending on military projects

Improved efficiency in tax collection and increased revenue

Lower tax rates for businesses only

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

Corporate tax

Sales tax

Wealth tax

Income tax

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

To provide exemptions to low-income individuals

To collect tax directly from large businesses only

To eliminate the need for tax returns

To collect taxes at the source from transactions and payments

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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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