T4Tutorials .PK

Taxation System and Budget of Pakistan

1. : Which body is responsible for collecting federal taxes in Pakistan?

(A) State Bank of Pakistan


(B) Federal Board of Revenue


(C) Ministry of Finance


(D) Securities and Exchange Commission




2. : What is the fiscal year period in Pakistan?

(A) January to December


(B) July to June


(C) April to March


(D) June to May




3. : What is the main source of revenue for the government of Pakistan?

(A) Non-tax revenue


(B) Foreign aid


(C) Direct and indirect taxes


(D) Loans from IMF




4. : Which of the following is a direct tax in Pakistan?

(A) Sales Tax


(B) Customs Duty


(C) Income Tax


(D) Excise Duty




5. : The annual federal budget of Pakistan is presented by which ministry?

(A) Ministry of Commerce


(B) Ministry of Interior


(C) Ministry of Finance


(D) Ministry of Planning and Development




6. : Who prepares the annual budget in Pakistan?

(A) Federal Cabinet


(B) National Assembly


(C) Finance Division


(D) Planning Commission




7. : What is the purpose of the budget?

(A) Increase imports


(B) Plan yearly expenditures and revenues


(C) Control inflation


(D) Monitor elections




8. : Which type of budget shows equal income and expenditure?

(A) Surplus Budget


(B) Deficit Budget


(C) Balanced Budget


(D) Development Budget




9. : What is a budget deficit?

(A) When income exceeds expenditure


(B) When expenditure exceeds income


(C) When loans are zero


(D) When exports increase




10. : Which tax is levied on the purchase of goods and services?

(A) Property Tax


(B) Capital Gains Tax


(C) Sales Tax


(D) Income Tax




11. : Which government institution audits government expenditures?

(A) State Bank of Pakistan


(B) FBR


(C) Auditor General of Pakistan


(D) SECP




12. : What percentage of GST (General Sales Tax) is typically charged in Pakistan?

(A) 5%


(B) 10%


(C) 17%


(D) 25%




13. : Which is an example of indirect tax?

(A) Capital Gains Tax


(B) Sales Tax


(C) Corporate Tax


(D) Personal Income Tax




14. : Which is not a part of the federal budget?

(A) Current expenditure


(B) Capital receipts


(C) State Bank profits


(D) Provincial tax collection




15. : Who presents the federal budget in the National Assembly?

(A) Prime Minister


(B) President


(C) Finance Minister


(D) Governor State Bank




16. : When is the federal budget typically presented?

(A) January


(B) June


(C) October


(D) March




17. : What is meant by “tax evasion”?

(A) Legal tax planning


(B) Failure to pay taxes legally due


(C) Paying extra taxes


(D) Paying foreign taxes




18. : Which tax is charged on income earned by companies?

(A) Income Tax


(B) Corporate Tax


(C) Excise Duty


(D) Sales Tax




19. : What is the function of the FBR?

(A) Monetary policy


(B) Public relations


(C) Tax collection and enforcement


(D) Industrial promotion




20. : What does PSDP stand for in the budget?

(A) Pakistan Strategic Development Program


(B) Public Sector Development Programme


(C) Provincial Support & Development Policy


(D) Public Sector Debt Projection




21. : Which document gives detailed data on Pakistan’s economy before the budget?

(A) Economic Outlook


(B) Pakistan Economic Survey


(C) Budget Speech


(D) Finance Bill




22. : Which house of Parliament approves the federal budget?

(A) Senate


(B) National Assembly


(C) Both houses


(D) Cabinet only




23. : Which of the following is not a federal tax in Pakistan?

(A) Sales Tax


(B) Property Tax


(C) Income Tax


(D) Customs Duty




24. : What is the term for reducing or eliminating taxes on certain items?

(A) Exemption


(B) Rebate


(C) Relief


(D) Surcharge




25. : A progressive tax system means:

(A) Lower income = higher tax


(B) All incomes = same tax


(C) Higher income = higher tax rate


(D) No tax




26. : What does “Zero-rated” mean in taxation?

(A) No tax charged


(B) Higher tax charged


(C) Temporary tax


(D) Tax is paid twice




27. : How often is income tax paid in Pakistan?

(A) Monthly


(B) Annually


(C) Weekly


(D) Quarterly




28. : What is a Finance Bill?

(A) A trade agreement


(B) An act for the judiciary


(C) A proposal to authorize taxes and expenditures


(D) A provincial loan




29. : What is the role of the State Bank during budget-making?

(A) Manage taxes


(B) Provide loans and monetary policy input


(C) Decide education budget


(D) Collect local taxes




30. : What is the effect of deficit financing?

(A) Reduces inflation


(B) Reduces debt


(C) May lead to inflation


(D) Increases exports




31. : Which tax applies to import and export goods?

(A) Income Tax


(B) Customs Duty


(C) Sales Tax


(D) Zakat




32. : The budgetary deficit is usually financed by:

(A) Foreign remittances


(B) Printing money or loans


(C) Gold reserves


(D) Education tax




33. : What is a surplus budget?

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34. : What type of tax is zakat in Pakistan?

(A) Indirect tax


(B) Wealth tax


(C) Income tax


(D) Professional tax




35. : Which is a non-tax revenue source for the government?

(A) GST


(B) Customs Duty


(C) State-owned enterprise profits


(D) Income Tax




36. : What is included in development expenditure?

(A) Salaries


(B) Defense budget


(C) Infrastructure projects


(D) Pension payments




37. : Tax holidays are granted to:

(A) Reduce exports


(B) Promote investment


(C) Increase food imports


(D) Reduce education budget




38. : Which is a goal of taxation?

(A) Increase imports


(B) Redistribute wealth


(C) Create inflation


(D) Reduce foreign aid




39. : The Senate can:

(A) Approve or reject the budget


(B) Only give recommendations


(C) Sign international treaties


(D) Collect taxes




40. : The largest allocation in Pakistan’s budget is usually for:

(A) Defense


(B) Education


(C) Agriculture


(D) Tourism




41. : Who monitors tax evasion in Pakistan?

(A) Provincial Police


(B) Ministry of Law


(C) Federal Board of Revenue


(D) Election Commission




42. : Withholding tax is:

(A) Refundable


(B) Non-refundable


(C) Charged on luxury imports only


(D) Paid by only exporters




43. : The Constitution of Pakistan requires that budget be passed by:

(A) Senate


(B) National Assembly


(C) Prime Minister


(D) President




44. : Which document contains tax changes proposed in the budget?

(A) Economic Survey


(B) PSDP


(C) Finance Bill


(D) Export Policy




45. : Surcharge is an additional charge on:

(A) Imports


(B) Regular tax


(C) Export rebates


(D) Loans




46. : Value Added Tax (VAT) is a type of:

(A) Income tax


(B) Indirect tax


(C) Corporate tax


(D) Wealth tax




47. : A tax on luxury goods is known as:

(A) Luxury tax


(B) Excise duty


(C) Custom duty


(D) Road tax




48. : Budget estimates are prepared by:

(A) President


(B) Finance Division


(C) Prime Minister


(D) Cabinet Secretariat




49. : What is the purpose of a supplementary budget?

(A) Increase taxes


(B) Reduce debt


(C) Meet additional expenditure


(D) Fund political campaigns




50. : The GST system in Pakistan is administered by:

(A) Ministry of Commerce


(B) SECP


(C) Federal Board of Revenue


(D) State Bank




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