NBR selects 600 firms for VAT audit
The National Board of Revenue (NBR) has selected 600 firms for Value Added Tax (VAT) audit through a fully automated system to ensure transparency and efficiency in the audit process. According to a press release issued today, the NBR has successfully implemented an Automated Risk Management Module in the e-VAT system to make the VAT audit selection process fully transparent and objective. Under the new system, firms are being selected automatically for audit based on 20 risk criteria.
The release says, selection process has been carried out entirely through an automated mechanism using specific weightage assigned to each risk criterion, eliminating any scope for manual intervention. This step fulfills a long-standing demand of taxpayers and civil society for a transparent VAT audit selection process. The NBR said that the risk criteria and their assigned weightage will be reviewed and adjusted in the future if the audit results do not produce effective outcomes.
Initially, 600 firms have been selected under the automated system and the list has been published on the NBR website. Among them, 405 are manufacturing firms, 98 service providers, 65 wholesale and retail businesses, and 32 importers and exporters. The NBR expressed hope that the introduction of this automated system for VAT audit selection will enhance transparency, neutrality, and efficiency in VAT management, make the system more taxpayer-friendly, and help prevent revenue evasion.
