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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 "e-filing" in Pakistan’s tax administration?

Submitting tax forms electronically through the FBR portal

Receiving tax rebates through an online system

Filing tax returns through a manual process

Filing tax returns on paper

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

Self-assessment

Withholding tax

Progressive tax

E-filing

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

To increase government spending

To eliminate foreign tax obligations

To reduce the number of taxpayers

To simplify tax collection processes and improve compliance

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

To identify errors or discrepancies in tax filings and enforce compliance

To provide tax refunds to businesses

To regulate foreign investments

To increase the number of taxable individuals

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

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

To increase the number of audits conducted

6. 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

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

Ministry of Finance

Pakistan Bureau of Statistics

State Bank of Pakistan

Federal Board of Revenue (FBR)

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

Increasing fines for non-compliance

Introducing the "One-Window" tax registration system

Raising tax rates for small businesses

Reducing the number of audits conducted

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

The value of imported goods

The amount of money collected from businesses

The rate at which taxes are levied

The total number of taxable individuals and businesses

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

Low taxpayer awareness

High complexity in filing taxes

Fewer audits and investigations

Timely collection of taxes and effective enforcement

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

To manage tax exemptions

To provide a unified platform for businesses to make tax payments

To collect taxes from foreign nationals

To track public sector employment rates

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

A code to identify tax exempt goods

A unique number assigned to each taxpayer for tax purposes

A number for foreign nationals only

A code used to identify businesses only

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

Claiming legal deductions to reduce taxable income

Avoiding the payment of taxes altogether

Misreporting business expenses to evade taxes

Underreporting income to reduce tax liability

14. 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

Incorrectly reporting income or expenses

Reporting all taxable income

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

To increase import duties on foreign goods

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

To encourage tax evasion

To eliminate all taxes for certain sectors

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

Reducing penalties for non-compliance

Decreasing the frequency of audits

Introducing self-assessment systems for taxpayers

Increasing the number of taxes levied

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

Increasing foreign investment

High levels of tax compliance

High inflation rates

Widespread tax evasion and non-compliance

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

Income tax

Sales tax

Corporate tax

Wealth tax

19. 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

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

To enforce tax collection

To grant tax exemptions

To audit taxpayers

To propose recommendations for improving the taxation system

21. What is "tax evasion"?

Reporting the correct income to tax authorities

Paying taxes early to receive a discount

Avoiding tax payment by illegally concealing income or inflating expenses

Legally reducing tax liability through deductions

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

To manage tax audits

To increase taxes on foreign goods

To offer tax exemptions to businesses

To resolve disputes between taxpayers and tax authorities

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

Increased inflation

Reduced public debt

Improved government spending capabilities

Increased tax evasion

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

Increased customs duties on all imports

Introduction of a uniform tax rate across all sectors

Reduced taxes for multinational corporations

Implementation of self-assessment systems and digital tax filing

25. 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

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

Introduction of VAT

Reduction of personal income tax rates

Tax amnesty schemes

Increase in corporate tax rates

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

Excise duty

Corporate tax

Sales tax

Withholding tax

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

Sales tax

Wealth tax

Property tax

Income tax

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

Improved efficiency in tax collection and increased revenue

Lower tax rates for businesses only

Reduced penalties for tax evasion

Increased government spending on military projects

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

Wealth tax

Property tax

Income tax

Sales tax

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

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

Taxes are only applied to wealth

Tax rates decrease as income rises

The tax rate is the same for all income levels

32. 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

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

Income from agricultural activities

All of the above

Income from foreign investments

Income from government bonds

34. 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

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

To enforce tax compliance through audits and enforcement actions

To control the national debt

To collect taxes from citizens

To ensure the correct distribution of government funds

36. 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 reduces the tax burden for taxpayers

It is a form of indirect taxation

It is a tax imposed on businesses only

37. 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 businesses receiving tax exemptions

Number of audits conducted by the tax authorities

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

To determine foreign exchange rates

To collect and manage taxes for the government

To provide government loans to businesses

To regulate trade policies

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

The reduction of sales tax rates

Elimination of tax on agricultural products

The digitalization of tax records and filing systems

Introduction of progressive taxation

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

To provide tax exemptions to businesses

To reduce the taxes owed by individuals

To ensure taxpayers comply with the tax laws and regulations

To identify new tax rates

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Mustansar KhanLast Updated: July 8, 2025

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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