MCQs

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1. Pakistan Fiscal year starts from:

a) 1st September

b) 1st January

c) 1st April

d) 1st July

2. Which is provincial tax in Pakistan?

a) Excise tax

b) Sales Tax

c) Import Duty

d) Motors token tax

3. There is how many chapters included in Income Tax Ordinance?

a) 11 Chapters

b) 12 Chapters

c) 13 Chapters

d) 14 Chapters

4. There is how many schedules included in Income Tax Ordinance 2001?

a) 9 Schedules

b) 6 Schedules

c) 7 Schedules

d) 8 Schedules

5. There is how many sections included in Income Tax Ordinance 2001?

a) 235 sections

b) 240 sections

c) 250 sections

d) 260 sections

6. Corporate tax is levied on:

a) Landlords 

b) Municipal corporation

c) Joint stock companies

d) Importers

7. Central Excise Act, 1944 was repealed by

a) The Federal Excise Act, 2002

b) The federal Excise Act, 2004

c) The Federal Excise Act, 2005

d) The Federal Excise Act, 2007

8. Name of Central Excise Duty has been changed as a Federal Excise Duty on

a) 1st July, 2003

b) 1st July, 2005

c) 1st July, 2007

d) 1st July, 2008

9. Inland Revenue Wing of the FBR was created, which is combination of ___________ domestic taxes.

a) 3

b) 4

c) 5

d) 6

10. If we deduct direct tax from personal income, we get:

a) Net national income

b) Personal saving

c) Disposable income

d) Per capita income

11. The largest part of national income is

a) Consumption

b) Investment

c) Transfer payments

d) Saving

12. We measure national income by this method:

a) Expenditure Method

b) Income Method

c) Product Method

d) All of above

13. The most important source of a government is:

a) Foreign loans

b) Taxes

c) Printing of new money

d) Sale of government property

14. In Pakistan, taxes are levied by:

a) Prime minister of Pakistan

b) President of Pakistan

c) Federal Cabinet of ministers

d) National Assembly

15. Government finance is called

a) National Finance

b) Public finance

c) Private finance

d) Both a and b

16. A direct tax is that which:

a) Is heavy burden on the tax payer

b) Can be directly deposited in the banks

c) Cannot be evaded

d) Is paid by the person on whom it is levied

17. In Pakistan government budget is prepared by:

a) National Assembly

b) President of Pakistan

c) Ministry of Finance

d) State Bank of Pakistan

18. If government increases taxes, private savings:

a) Increase

b) Decrease

c) Do not change

d) Will become zero

19. Taxes on commodities are :

a) Direct taxes

b) Indirect taxes

c) Progressive taxes

d) Proportional tax

20. Govt. Prepared its budget:

a) Weekly

b) Monthly

c) Annually

d) Quarterly

21. It is direct tax:

a) Excise tax

b) Sale tax

c) Income tax

d) Custom duty

22. Which tax is not shared between central and provincial governments?

a) Excise tax

b) Sales tax

c) Custom duty

d) Property tax

23. Which is provincial tax in Pakistan?

a) Excise tax

b) Sales tax

c) Import duty

d) Motor token tax

24. The budget estimate prepared by ministry of finance is finally approved by:

a) State Bank

b) President

c) Senate

d) National Assembly

25. Devaluation means

a) Change in the currency of a country

b) Decrease in the value of gold

c) Decrease in the value of money in terms of foreign currency

d) Decrease in the value of money internally

26. When the central Board of Revenue (CBR) was established?

a) 1st April, 1924

b) 7th April, 1924

c) 6th April, 1924

d) 9th April, 1924

27. What is the main function of money?

a) To buy eatables from the market

b) To serve as a medium of exchange

c) To earn interest from a bank

d) To buy luxurious goods

28. A direct tax is that which:

a) Is heavy burden on the tax payers

b) Can be directly deposited in the banks

c) Cannot be evaded

d) Is paid by the person on whom it is levied

29. Special procedure under the title of Sales Ta special procedure (Withholding Tax) Rules 2007 was introduced on:

a) 20th June 2007

b) 10th June 2007

c) 30th June 2007

d) 25th June 2007

30. Whom of the following propounded principles of taxation: 

a) Keynes

b) Marshall

c) Adam Smith

d) Al Ghaali

31. There is how many schedules included in the Sales Tax Act, 1990?

a) 9 schedules

b) 6 schedules

c) 7 schedules

d) 8 schedules

32. There is how many sections included in the Sales Tax Act. 1990?

a) 75 Sections

b) 80 sections

c) 85 sections

d) 95 sections

33. Which section of sales tax act, 1990 deals with Special Audit by Chartered Accountants or Cost Accountants?

a) 29

b) 30

c) 31

d) 32-A

34. Which Section of the Sales Tax Act, 1990 deals with offences and penalities?

a) 33

b) 34

c) 35

d) 36

35. No person other than a ________ shall make any deduction or reclaim input tax in respect of taxable supplies made or to be made by him.

a) Unregistered person

b) Registered person

c) Association

d) None of these

36. In Pakistan, income tax is collected by:

a) Local govt.

b) Provincial govt.

c) Federal govt.

d) All governments

37. Sales tax in Pakistan is:

a) Direct and progressive

b) Direct and proportional

c) Indirect and progressive

d) Indirect and proportional

38. It is easy and convenient to pay:

a) Direct tax

b) Indirect tax

c) Proportional tax

d) Progressive tax

39. It is difficult to evade:

a) Direct tax

b) Indirect 

c) Proportional

d) Progressive tax

40. Which tax is not shared between central and provincial governments?

a) Excise tax

b) Sales tax

c) Custom duty

d) Property tax

41. Which is provincial tax in Pakistan?

a) Excise tax

b) Sales tax

c) Import duty

d) Motors token tax

42. What is benefit of tariffs?

a) Increased choice

b) Increased government revenue

c) More competition

d) More trade

43. Pakistan public debt is:

a) Larger than GNP

b) Equal to GNP

c) Smaller than GNP

d) Smaller than our exports

44. Pakistan fiscal year start from:

a) 1st September

b) 1st January

c) 1st April

d) 1st July

45. As per law each registered person must file a return by the _________ of each month regarding the sales made in last month.

a) 10th

b) 15th

c) 20th

d) 25th

46. There are ___ director generals in FBR?

a) 6

b) 7

c) 9

d) 10

47. There are ___ large taxpayer units for inland revenue collection

a) 2

b) 5

c) 3

d) 6

48. Fiscal laws means a general reference to the laws relating to:

a) Budget matters

b) Finance matters

c) Tax matters

d) None of these

49. The federal budget is presented in the parliament by:

a) Prime Minister

b) President

c) Finance minister

d) Commerce minister

50. System of eTax in Pakistan was introduced in?

a) 2007

b) 2008

c) 2009

d) 2010

 Answers

1d 2d 3c 4d 5b 6c 7c 8b

 9a 10c 11a 12d 13b

 14d15b 16d 17c 18b 19b

 20c 21c 22d 23d 24d

25c 26a 27b 28d 29c 30c 

31a 32a 33d 34a35b 36c 

37d 38b 39a 40d 41d 42b 

43c 44d 45b 46b 47c 48b 

49c 50b.