What is the main purpose of taxation in Pakistan?
a) To reduce government spending
b) To generate revenue for public welfare and services
c) To increase personal wealth
d) To encourage imports and exports
Which of the following is a direct tax in Pakistan?
a) Sales tax
b) Income tax
c) Customs duty
d) Excise duty
What is the rate of sales tax on goods and services in Pakistan?
a) 5%
b) 10%
c) 17%
d) 20%
Which body is responsible for collecting taxes in Pakistan?
a) Federal Board of Revenue (FBR)
b) State Bank of Pakistan
c) Securities and Exchange Commission of Pakistan (SECP)
d) Ministry of Finance
What is the tax collection system for income tax in Pakistan?
a) Progressive taxation
b) Regressive taxation
c) Flat-rate taxation
d) Proportional taxation
What is the minimum income threshold for taxability for individuals in Pakistan?
a) Rs. 200,000
b) Rs. 300,000
c) Rs. 600,000
d) Rs. 1,000,000
Which of the following taxes is imposed on goods imported into Pakistan?
a) Income tax
b) Sales tax
c) Customs duty
d) Property tax
What type of tax is the federal excise duty in Pakistan?
a) Direct tax
b) Indirect tax
c) Progressive tax
d) Flat tax
What is the tax on property in Pakistan called?
a) Wealth tax
b) Capital gains tax
c) Property tax
d) Inheritance tax
What is the role of the tax ombudsman in Pakistan?
a) To impose new taxes
b) To resolve disputes related to tax assessments and refunds
c) To collect income tax
d) To monitor foreign investments
Which tax is applicable to the income generated by companies in Pakistan?
a) Sales tax
b) Corporate income tax
c) Value-added tax
d) Customs duty
How is the tax on agricultural income treated in Pakistan?
a) Agricultural income is fully exempt from tax
b) Agricultural income is taxed at a fixed rate
c) Agricultural income is taxed under personal income tax laws
d) Agricultural income is taxed under a separate agricultural income tax law
Which of the following is a major challenge for the tax system in Pakistan?
a) High level of tax compliance
b) Widespread tax evasion and underreporting
c) Low tax rates
d) Over-reliance on direct taxes
What is the maximum rate of income tax for individuals in Pakistan?
a) 15%
b) 20%
c) 30%
d) 35%
What is VAT (Value Added Tax) in Pakistan?
a) A tax on income
b) A sales tax levied at each stage of production or distribution
c) A tax on agricultural produce
d) A tax on wealth
Which of the following is a source of revenue for local governments in Pakistan?
a) Customs duty
b) Federal income tax
c) Property tax
d) Corporate tax
What is the Pakistan Revenue Authority responsible for?
a) Collecting income tax only
b) Ensuring compliance with tax laws
c) Collecting taxes on international trade only
d) Setting tax rates for individuals
Which of the following taxes is designed to target consumer goods in Pakistan?
a) Excise duty
b) Income tax
c) Sales tax
d) Property tax
What is the “Wealth Tax” in Pakistan primarily imposed on?
a) Income from business
b) Taxable assets of individuals with high net worth
c) Corporate income
d) Foreign currency transactions
Which of the following is exempt from sales tax in Pakistan?
a) Basic food items
b) Luxury goods
c) Motor vehicles
d) Imported electronics
What is the capital gains tax rate on the sale of shares in Pakistan?
a) 5%
b) 10%
c) 15%
d) 20%
What is the major reason for low tax collection in Pakistan?
a) High tax rates
b) Complex tax laws
c) Lack of awareness among taxpayers
d) Widespread tax evasion and avoidance
Which of the following is a form of indirect tax in Pakistan?
a) Corporate tax
b) Sales tax
c) Income tax
d) Agricultural tax
How often do taxpayers need to file income tax returns in Pakistan?
a) Monthly
b) Quarterly
c) Annually
d) Bi-annually
Which of the following taxes is levied on the sale and purchase of real estate in Pakistan?
a) Capital gains tax
b) Stamp duty
c) Property tax
d) Corporate tax
What is a key benefit of a progressive tax system in Pakistan?
a) It ensures that the wealthy contribute a higher proportion of their income
b) It reduces the tax burden on lower-income individuals
c) It is easier to collect
d) It encourages foreign investments
Which of the following is a common challenge in Pakistan’s taxation system?
a) Simplicity in tax procedures
b) High tax compliance rates
c) Inefficiency in tax collection and enforcement
d) Clear and transparent tax laws
What is the role of tax audit in Pakistan?
a) To collect taxes
b) To monitor the enforcement of tax laws
c) To assess taxpayers’ compliance and identify discrepancies
d) To set tax rates for businesses
Which of the following is a direct consequence of tax evasion in Pakistan?
a) Increased government spending
b) Decreased government revenue
c) Improved public services
d) Higher tax compliance rates
What is the “Withholding Tax” in Pakistan?
a) A tax levied on the profits of multinational companies
b) A tax deducted by an employer on behalf of the government
c) A tax levied on the value of goods sold
d) A tax on the wealth of the individual
