The National Board of Revenue (NBR) has selected 600 firms for Value Added Tax (VAT) audit using a fully automated system.

The initiative is designed to eliminate manual intervention and ensure transparency and efficiency throughout the audit process.

According to a press release issued on Thursday, the NBR successfully implemented an Automated Risk Management Module within the e-VAT system.

This new mechanism selects firms based on 20 specific risk criteria, each assigned a particular weightage.

By utilizing this objective framework, the NBR has fulfilled a long-standing demand from taxpayers and civil society for a neutral and transparent selection process.

The NBR stated that these risk criteria and their weightings are not static and will be reviewed and adjusted in the future if audit results do not yield effective outcomes.

This iterative approach aims to refine the system’s ability to identify potential irregularities while remaining fair to compliant businesses.

Of the 600 firms initially selected under this automated system, the majority are from the manufacturing sector.

The list, now published on the NBR website, includes 405 manufacturing firms, 98 service providers, 65 wholesale and retail businesses, and 32 importers and exporters.

The revenue board expressed optimism that the transition to an automated selection process will enhance neutrality in VAT management, foster a more taxpayer-friendly environment, and serve as a robust tool in preventing revenue evasion across the country.

Business Category	Number of Firms
Manufacturing	405
Service Providers	98
Wholesale & Retail	65
Importers & Exporters	32
Total	600