The VAT audit selection in Bangladesh has entered a new phase as the National Board of Revenue has selected 600 firms through a fully automated system aimed at improving transparency and efficiency.
In a statement issued on Thursday, the National Board of Revenue said it has implemented an Automated Risk Management Module within the e-VAT system, allowing companies to be selected for audit based on predefined risk indicators rather than manual intervention.
Under the new system, firms are evaluated using 20 risk criteria, each assigned specific weightage. The entire selection process has been carried out automatically, removing discretionary decision-making and reducing the risk of bias.
The National Board of Revenue said the move addresses long-standing concerns from taxpayers and civil society over transparency in VAT audit selection, which had previously relied on manual processes.
A total of 600 firms have been selected in the initial phase, with the list published on the National Board of Revenue website. Of these, 405 are manufacturing companies, 98 are service providers, 65 operate in wholesale and retail, and 32 are involved in import and export activities.
Officials said the risk criteria and their weightage will be reviewed and adjusted in future cycles if audit outcomes do not meet expectations, indicating a flexible policy approach to improving compliance.
The introduction of automated audit selection is part of broader efforts to modernise Bangladesh’s tax administration system, enhance accountability and reduce opportunities for revenue evasion.
The National Board of Revenue said the system is expected to strengthen VAT compliance, improve neutrality in enforcement and make the overall tax process more efficient and taxpayer-friendly.
Analysts say the shift towards data-driven audit selection reflects a growing emphasis on digital governance and institutional reform in Bangladesh’s fiscal management framework.
