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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 government initiative helps businesses comply with tax regulations in Pakistan?

Raising tax rates for small businesses

Reducing the number of audits conducted

Increasing fines for non-compliance

Introducing the "One-Window" tax registration system

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

To track public sector employment rates

To manage tax exemptions

To provide a unified platform for businesses to make tax payments

To collect taxes from foreign nationals

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

List of all goods imported into Pakistan

Number of audits conducted by the tax authorities

Number of businesses receiving tax exemptions

Names of all registered taxpayers and their tax obligations

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

Corporate tax

Withholding tax

Excise duty

Sales tax

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

The tax rate is the same for all income levels

Taxes are only applied to wealth

Tax rates decrease as income rises

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

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

Federal Board of Revenue (FBR)

Ministry of Finance

State Bank of Pakistan

Pakistan Bureau of Statistics

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

To increase subsidies for exporters

To simplify the tax collection process and increase revenue

To focus on corporate taxation only

To reduce the number of taxable individuals

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

Increased government spending on military projects

Reduced penalties for tax evasion

Improved efficiency in tax collection and increased revenue

Lower tax rates for businesses only

9. 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

Only large corporations can use E-filing

Taxpayers must file paper returns only

10. 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

11. 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

12. 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

Paying taxes before the deadline

Reporting all taxable income

Incorrectly reporting income or expenses

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

To resolve disputes between taxpayers and tax authorities

To manage tax audits

To offer tax exemptions to businesses

To increase taxes on foreign goods

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

Implementation of self-assessment systems and digital tax filing

Introduction of a uniform tax rate across all sectors

Increased customs duties on all imports

Reduced taxes for multinational corporations

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

A number for foreign nationals only

A code used to identify businesses only

A unique number assigned to each taxpayer for tax purposes

A code to identify tax exempt goods

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

Introduction of progressive taxation

The reduction of sales tax rates

The digitalization of tax records and filing systems

Elimination of tax on agricultural products

17. 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)

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

To identify new tax rates

To ensure taxpayers comply with the tax laws and regulations

To reduce the taxes owed by individuals

To provide tax exemptions to businesses

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

To propose recommendations for improving the taxation system

To grant tax exemptions

To audit taxpayers

To enforce tax collection

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

High levels of tax compliance

Widespread tax evasion and non-compliance

Increasing foreign investment

High inflation rates

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

E-filing

Progressive tax

Self-assessment

Withholding tax

22. 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 collect taxes at the source from transactions and payments

To eliminate the need for tax returns

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

High complexity in filing taxes

Timely collection of taxes and effective enforcement

Low taxpayer awareness

Fewer audits and investigations

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

Income from government bonds

All of the above

Income from foreign investments

Income from agricultural activities

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

To increase government spending

To reduce the number of taxpayers

To eliminate foreign tax obligations

To simplify tax collection processes and improve compliance

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

It is a form of indirect taxation

It reduces the tax burden for taxpayers

It is a tax imposed on businesses only

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

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

To provide tax refunds to businesses

To increase the number of taxable individuals

To identify errors or discrepancies in tax filings and enforce compliance

To regulate foreign investments

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

Improved government spending capabilities

Increased inflation

Increased tax evasion

Reduced public debt

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

Sales tax

Income tax

Property tax

Wealth tax

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

Filing tax returns on paper

Receiving tax rebates through an online system

Filing tax returns through a manual process

Submitting tax forms electronically through the FBR portal

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

Reduction of personal income tax rates

Tax amnesty schemes

Increase in corporate tax rates

Introduction of VAT

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

Low taxpayer compliance and high tax evasion

Over-taxation of businesses

Excessive subsidies to certain industries

The high tax rates on income

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

To control the national debt

To enforce tax compliance through audits and enforcement actions

To collect taxes from citizens

To ensure the correct distribution of government funds

34. What is "tax evasion"?

Reporting the correct income to tax authorities

Legally reducing tax liability through deductions

Avoiding tax payment by illegally concealing income or inflating expenses

Paying taxes early to receive a discount

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

To regulate trade policies

To collect and manage taxes for the government

To provide government loans to businesses

To determine foreign exchange rates

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

Income tax

Wealth tax

Sales tax

Corporate tax

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

Decreasing the frequency of audits

Increasing the number of taxes levied

Introducing self-assessment systems for taxpayers

Reducing penalties for non-compliance

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

Income tax

Wealth tax

Sales tax

Property tax

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

To increase import duties on foreign goods

To encourage tax evasion

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

To eliminate all taxes for certain sectors

40. 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 reduce government intervention in tax collection

To offer tax credits to taxpayers

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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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