Note: Taxation Structure of Pakistan MCQs. These MCQs publish accordingly to the pattern and syllabus of the Inspector Inland Revenue test in the Federal Board of Revenue Department. If you don’t know about the Syllabus, then first check the syllabus Click Here. In case of any error, mentioned it in the comment box below.

 

1. Suggestions to improve the taxation structure of Pakistan are:

A. The Proportion of Direct Taxes is Low and that of Indirect Taxes is High
B. The Indirect Taxes not only lead to Increase Inflation but they are also Promoting Unequal Income Distribution
C. The Agri Incomes is Exempted from Taxes. It means that our taxation System has to Face a lot of Problems
D. All of these

Answer

Correct Answer: D. All of these

 

2. The suggestions are given to remove the problems are:

A. The Excise Department has Posted its staff at factory Gates so that after Physical Counting of products the Excise Duty Could be Imposed
B. The Proportion of Direct Taxes is Increased while that of Indirect Taxes is Decreased
C. The Tax Base is Extended. The allowances and rebates are Removed in Respect of Big Companies and Firms
D. All of these

Answer

Correct Answer: D. All of these 

 

3. Structural Reforms in Pakistan are:

A. Pakistan faced Macro-Economic instability during the mid and late 1980s
B. Now we see that measure was adopted in Pakistan. In the late 1990s and 2000 Regarding Tax Firms
C. They will lead to Economic Stability as well as Economic Development
D. All of these

Answer

Correct Answer: D. All of these 

 

4. Tax Reforms are:

A. The Establishment of Tax Ombudsmen will help to Remove the Problems of Tax Payers
B. They will help to Boost Tax Revenue
C. Because of Implementation of Income Tax Ordinance 2001 from the Budget 2002-03
D. In order to extend tax-base the tax-amnesty schemes were put to an end
E. All of these

Answer

Correct Answer: E. All of these 

 

5. Trade and Tariff Reforms are:

A. There is a notable Feature of our taxation System that we Depended Upon those Taxes Which were Concerned with Trade
B. Thus During this Period the Export Industries were not Set-up
C. The Corruption went on Increasing and so Many Financial Anomalies were Observed Above all the Value-added Industries could not be set-up in the country
D. All of the above

Answer

Correct Answer: D. All of these 

 

6. General Sales Tax Reforms During the late 1990s great stress was laid upon to impose General Sales Tax in the country so that:

A. The Compensation Could be Made Because of fall in Tariff Duties
B. The Savings Would Increase Because of Imposition of Consumption Tax
C. There will be Documentation of the Transaction which Could be used to impose Income Tax
D. All of these

Answer

Correct Answer: D. All of these 

 

7. Value Added Tax (VAT) is:

A. Again tax will be Imposed on the cloth Equal to the Value Addition from Yarn to Cloth
B. Thus Under VAT Tax is Imposed on Value Addition in Each and Every Stage of Production
C. On Each Stage the Tax is imposed only to the Amount of Value Added
D. All of these

Answer

Correct Answer: D. All of these 

 

8. The Arguments in Favor of VAT are:

A. VAT Makes a Cross Checking Possible VAT may provide Incentive to the Firms to Report Regarding non-payment of Taxes by other Firms if they are allowed some Tax Credit
B. Within a Trading block Tax Policies have to be Harmonized in the Respect VAT Plays a more Useful role that the different types of Sales Tax in Different Countries
C. The Sales Taxes Discriminate in favor of Imports Compared with Home-Produced goods because the local goods have to Pass through a number of Stages within the Economy than Imports
D. All of these

Answer

Correct Answer: D. All of these 

 

9. Arguments against are:

A. VAT can make the Tax Structure Complicated Particularly When the Countries like Pakistan Lack the Skilled and Efficient Personal Who could Implement VAT
B. In the Process of illiteracy and Practice of non-Documentation on the Part of the Producers Particularly in the un-organized Sectors of Pakistan the Success of VAT will Remain Doubtful
C. The Success of VAT is Subject to Tax morality on the part of Taxpaying firms Which is mostly lacking in UDCs like Pakistan
D. All of these

Answer

Correct Answer: D. All of these 

 

10. Tax Reforms Commission for:

A. Review and Rationalization of Direct and Indirect Taxes
B. Customs Tariff Rationalization
C. Review of Autonomy and Administrative Structure of FBR
D. All of these

Answer

Correct Answer: D. All of these 

 

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