B Mirror Report: The National Board of Revenue (NBR) has selected 600 businesses for value-added tax (VAT) audit through a fully automated system, aiming to ensure greater transparency and fairness in the audit process.

In a press release, the revenue authority said it has introduced an Automated Risk Management Module within the e-VAT system, enabling audit selection based on risk assessment.

Under this system, firms are automatically chosen using 20 risk indicators, each assigned specific weightage depending on the degree of risk exposure. The process removes any scope for manual intervention, addressing long-standing demands from taxpayers and civil society for an impartial and transparent audit mechanism.

According to the NBR, the risk-based automated selection is expected to improve efficiency in VAT administration and help curb tax evasion.

Initially, 600 firms have been selected and the list has been published on the NBR website. Of these, 405 are manufacturing units, 98 service providers, 65 trading firms, and 32 importers and exporters.

The NBR also said that the effectiveness of the risk criteria and assigned weightage will be reviewed and adjusted if audit outcomes are not satisfactory.

Officials believe this automated approach will make the VAT system more taxpayer-friendly, while strengthening compliance and boosting revenue mobilisation.