Pakistan’s Tax System and Budgeting MCQs

1. The primary tax collection authority in Pakistan is:
(A) State Bank of Pakistan
(B) Federal Board of Revenue (FBR)
(C) Ministry of Finance
(D) Securities and Exchange Commission of Pakistan (SECP)

2. The largest source of tax revenue in Pakistan is:
(A) Sales Tax
(B) Income Tax
(C) Customs Duty
(D) Property Tax

3. The current tax system in Pakistan is based on:
(A) Direct Taxes only
(B) Indirect Taxes only
(C) Both Direct and Indirect Taxes
(D) Wealth Tax only

4. The corporate income tax rate for companies in Pakistan is:
(A) 15%
(B) 20%
(C) 29%
(D) 35%

5. Which of the following is a direct tax in Pakistan?
(A) Sales Tax
(B) Customs Duty
(C) Income Tax
(D) Excise Duty

6. The General Sales Tax (GST) in Pakistan is currently set at:
(A) 10%
(B) 13%
(C) 17%
(D) 25%

7. Which of the following taxes is collected at the provincial level?
(A) Federal Excise Duty
(B) Income Tax
(C) Sales Tax on Services
(D) Customs Duty

8. The largest share of Pakistan’s budget is allocated to:
(A) Education
(B) Defense
(C) Health
(D) Infrastructure Development

9. The fiscal year in Pakistan starts from:
(A) January 1
(B) March 1
(C) July 1
(D) October 1

10. The budget is presented annually by which ministry?
(A) Ministry of Planning and Development
(B) Ministry of Finance
(C) State Bank of Pakistan
(D) Federal Board of Revenue

11. What is the primary objective of Pakistan’s annual budget?
(A) Increase government salaries
(B) Manage the country’s revenue and expenditures
(C) Reduce exports
(D) Introduce new currencies

12. Which organization is responsible for auditing Pakistan’s budget spending?
(A) Federal Board of Revenue (FBR)
(B) Ministry of Finance
(C) Auditor General of Pakistan
(D) State Bank of Pakistan

13. The Public Sector Development Program (PSDP) is included in which part of the budget?
(A) Current Expenditure
(B) Defense Budget
(C) Development Expenditure
(D) Foreign Aid

14. Which tax is collected on imported goods?
(A) Sales Tax
(B) Income Tax
(C) Customs Duty
(D) Property Tax

15. The National Finance Commission (NFC) Award determines:
(A) Foreign Direct Investment (FDI) policies
(B) Tax rates for individuals
(C) Distribution of financial resources between federal and provincial governments
(D) The defense budget allocation

16. What type of tax system does Pakistan follow?
(A) Progressive Tax System
(B) Regressive Tax System
(C) Flat Tax System
(D) Mixed Tax System

17. The Finance Bill in Pakistan is approved by:
(A) The Senate only
(B) The Prime Minister
(C) The National Assembly
(D) The Supreme Court

18. Which sector enjoys the most tax exemptions in Pakistan?
(A) Agriculture
(B) Manufacturing
(C) Telecom
(D) Banking

19. Which of the following is an indirect tax?
(A) Income Tax
(B) Property Tax
(C) Sales Tax
(D) Capital Gains Tax

20. What is the main challenge in Pakistan’s tax system?
(A) High tax collection
(B) Low tax-to-GDP ratio
(C) High reliance on direct taxes
(D) Strict tax enforcement