#481

What is the total value of the Extended Fund Facility (EFF) approved by the IMF for Pakistan in September 2024?

(a) $3 Billion

(b) $5 Billion

(c) $7 Billion

(d) $9 Billion

Explanation: In September 2024, the IMF Executive Board approved a 37-month Extended Fund Facility (EFF) arrangement for Pakistan worth approximately $7 billion (SDR 5,320 million).

#482

In the Federal Budget 2024-25, the government increased the tax rate on capital gains from securities for non-filers to a maximum of:

(a) 20%

(b) 35%

(c) 45%

(d) 50%

Explanation: The 2024-25 budget significantly tightened the tax net for non-filers, setting the capital gains tax (CGT) on securities for non-filers at normal rates with a maximum slab of 45%.

#483

The Federal Board of Revenue (FBR) set a tax collection target of approximately what amount for the fiscal year 2024-25?

(a) Rs 9.4 Trillion

(b) Rs 11.5 Trillion

(c) Rs 12.97 Trillion

(d) Rs 15.2 Trillion

Explanation: The government set an ambitious tax revenue target of Rs 12.97 trillion for FY 2024-25, aiming for a roughly 40% increase over the previous year's collection.

#484

Which tax was imposed on milk sold by corporate farms or brands in the 2024-25 Budget?

(a) 10% Excise Duty

(b) 18% General Sales Tax (GST)

(c) 5% Withholding Tax

(d) Zero-rated

Explanation: The 2024-25 budget removed the zero-rating status for packaged milk sold by corporate farms and brands, subjecting it to an 18% General Sales Tax.

#485

The 'Tajir Dost Scheme' launched in 2024 aims to bring which group into the tax net?

(a) Freelancers

(b) Retailers and Wholesalers

(c) Real Estate Agents

(d) Software Developers

Explanation: The Tajir Dost Scheme is a specific initiative by the FBR aimed at registering retailers and wholesalers to broaden the tax base and formalize the retail sector.

#486

In the 2024-25 budget, the tax rate on dividend income for mutual funds earning more than 50% from debt was increased to:

(a) 15%

(b) 20%

(c) 25%

(d) 35%

Explanation: To discourage arbitrage, the tax rate on dividends from mutual funds that derive 50% or more of their income from profit-on-debt was raised from 15% to 25%.

#487

Which sector was identified for 'Right-Sizing' and privatization to reduce fiscal losses in 2024-25?

(a) Power Distribution Companies (DISCOs)

(b) Public Universities

(c) Motorway Police

(d) NADRA

Explanation: The government initiated a policy to 'provincialize' or privatize Power Distribution Companies (DISCOs) to curb massive circular debt and operational losses.

#488

The Petroleum Development Levy (PDL) target for FY 2024-25 was set at:

(a) Rs 800 Billion

(b) Rs 1.0 Trillion

(c) Rs 1.3 Trillion

(d) Rs 2.0 Trillion

Explanation: The government targeted Rs 1.3 trillion in collection from the Petroleum Development Levy (PDL), utilizing the increased levy rates on petrol and diesel.

#489

The 'Sovereign Wealth Fund' Act was amended in 2024 to primarily:

(a) Allow investment in cryptocurrency

(b) Remove tax exemptions and special privileges

(c) Privatize all state assets

(d) Block foreign investment

Explanation: To meet IMF governance conditions, the Sovereign Wealth Fund Act was amended to remove tax exemptions and privileges, ensuring state-owned enterprises in the fund compete on a level playing field.

#490

In the 2024-25 Budget, the Capital Gains Tax (CGT) on real estate for filers is set at:

(a) 5%

(b) 10%

(c) 15%

(d) 25%

Explanation: For properties acquired on or after July 1, 2024, a flat Capital Gains Tax rate of 15% applies to filers, regardless of the holding period.

#491

To curb 'flying invoices', the 2024-25 Budget removed sales tax on which item?

(a) Iron and Steel Scrap

(b) Cotton Yarn

(c) Plastic Granules

(d) Sugar

Explanation: Sales tax on iron and steel scrap was removed to eliminate the rampant issue of fake or 'flying' invoices that were being used to claim fraudulent input tax adjustments.

#492

What is the new tax rate on 'Non-Salaried' individuals for the highest income slab in the 2024-25 Budget?

(a) 35%

(b) 40%

(c) 45%

(d) 50%

Explanation: The top marginal tax rate for non-salaried individuals and Associations of Persons (AOPs) was raised to 45% in the 2024-25 budget.

#493

Which province launched the 'Kisan Card' scheme in 2024 to provide direct subsidies to farmers?

(a) Sindh

(b) Punjab

(c) Balochistan

(d) Khyber Pakhtunkhwa

Explanation: The Punjab government launched the Kisan Card to facilitate farmers with direct subsidies on inputs like fertilizer and seeds, and access to low-interest loans.

#494

In 2024, Pakistan finalized a preferential trade agreement (PTA) protocol with which Central Asian nation?

(a) Kazakhstan

(b) Turkmenistan

(c) Uzbekistan

(d) Kyrgyzstan

Explanation: Pakistan and Uzbekistan have been actively implementing and refining their Preferential Trade Agreement (PTA) and Transit Trade Agreement to boost regional commerce.

#495

The tax-to-GDP ratio of Pakistan reached what level in FY 2024-25 for the first time in a decade?

(a) 8.5%

(b) 9.2%

(c) 10.3%

(d) 12.5%

Explanation: Driven by aggressive taxation measures, the FBR's tax-to-GDP ratio crossed into double digits, reaching approximately 10.3% in FY 2024-25.

#496

Which export sector faced the removal of the fixed 1% final tax regime in the 2024-25 Budget?

(a) Exporters (General)

(b) IT Freelancers only

(c) Surgical Instruments only

(d) Sports Goods only

Explanation: The 2024-25 budget shifted exporters from a fixed 1% final tax regime to the normal tax regime (29% corporate tax + super tax), treating the 1% payment only as a minimum tax.

#497

What is the new Advance Withholding Tax rate for non-filer retailers and wholesalers in the 2024-25 Budget?

(a) 1%

(b) 2.25%

(c) 5%

(d) 10%

Explanation: To penalize non-compliance, the Advance Withholding Tax for non-filer distributors, wholesalers, and retailers was increased from 1% to 2.25%.

#498

The 'Winter Package 2024' offered relief on which utility to encourage consumption?

(a) Natural Gas

(b) Electricity (Incremental usage)

(c) Water

(d) Internet

Explanation: The government offered a reduced tariff on incremental electricity consumption during winter months to encourage the use of surplus power capacity and reduce reliance on gas heating.

#499

The 'National Firewall' implemented in 2024 serves what primary purpose?

(a) Physical border security

(b) Internet traffic monitoring and content filtering

(c) Financial transaction processing

(d) Weather forecasting

Explanation: The National Firewall was installed to monitor internet traffic, filter content considered 'propaganda' or fake news, and manage cybersecurity threats.

#500

Which item saw its Advance Tax increased for vehicle registration based on engine capacity in the 2024-25 Budget?

(a) Electric Vehicles

(b) Motorcycles

(c) Luxury Cars (2000cc and above)

(d) Bicycles

Explanation: The budget significantly increased the Advance Tax on the registration of vehicles with engine capacities of 2000cc and above to tax luxury consumption.

April 2024 Current Affairs MCQs & Solutions