Written by The Banking Post
National Board of Revenue has selected 600 businesses for value-added tax (VAT) audits using a fully automated system, marking a shift towards a more transparent and risk-based compliance framework.
The revenue authority said the selection was carried out through an Automated Risk Management Module integrated into the e-VAT system, eliminating manual intervention in the audit process.
Firms were chosen based on 20 risk indicators, each assigned a specific weight depending on exposure. The move is expected to address long-standing concerns over discretionary audit selection and improve fairness in tax administration.
Of the selected entities, 405 are manufacturers, 98 service providers, 65 trading firms, and 32 importers and exporters.
Officials say the automated system will enhance efficiency and help detect tax irregularities more effectively. “The risk-based selection will ensure greater transparency and strengthen compliance,” an official said.
The NBR added that the effectiveness of the risk parameters will be reviewed and adjusted if audit outcomes fall short of expectations.
The initiative is part of broader efforts to modernise VAT administration, making it more taxpayer-friendly while improving revenue mobilisation.
