NBR selects 600 firms for automated VAT audit

The National Board of Revenue (NBR) has selected 600 businesses for value-added tax (VAT) audits through a fully automated system, aiming to ensure greater transparency in the process.
In a press release, the revenue authority said it has introduced an Automated Risk Management Module within the e-VAT system to select firms based on risk assessment.
Under the system, companies are chosen automatically using 20 risk criteria, each assigned specific weightage depending on the level of risk exposure.
The process eliminates scope for manual intervention, addressing long-standing demands from taxpayers and civil society for a transparent and impartial audit mechanism.
According to the NBR, the risk-based selection is expected to enhance fairness and efficiency in VAT administration, while helping curb tax evasion.
Initially, 600 firms have been selected, with the list published on the NBR website.
Of them, 405 are manufacturing entities, 98 service providers, 65 trading firms, and 32 importers and exporters.
The NBR said the effectiveness of the risk criteria and assigned weightage will be reviewed and adjusted in future if audit outcomes do not prove satisfactory.
Officials added that the automated approach will make the VAT system more taxpayer-friendly while strengthening compliance and revenue mobilisation.

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