Enhancing Tax Administration In Transition Economies Lessons For Uzbekistan

Abstract

Purpose: This study aims to evaluate the effectiveness of tax administration reforms in transition economies, focusing on how technological innovations, governance improvements, and behavioral strategies influence tax compliance and system efficiency. It specifically examines the case of Uzbekistan to highlight the unique challenges and opportunities in implementing such reforms in a transition economy context.

Design/Methodology/Approach: Employing a mixed-methods approach, this research integrates quantitative regression analysis with qualitative case studies. The regression model assesses the impacts of various determinants such as GDP per capita, technology adoption, governance quality, political stability, and foreign direct investment on tax revenue as a percentage of GDP. Case studies from multiple transition economies, including an in-depth examination of Uzbekistan, provide contextual insights and complement the quantitative data.

Findings: The findings reveal that technological advancements and governance reforms significantly enhance tax revenue and compliance. The case studies corroborate these results, illustrating practical examples of reform success and the nuanced challenges encountered. Uzbekistan’s reforms show significant improvements in tax system efficiency through technology integration, but also highlight obstacles such as adapting to a growing taxpayer base and managing public expectations.

Originality/Value: This study contributes to the existing literature by offering a comprehensive analysis of tax reform processes in transition economies with a unique focus on Uzbekistan. It extends the theoretical understanding of tax administration by linking empirical findings with established theories like the Technology Acceptance Model and governance theories. The research provides valuable policy recommendations and identifies future research directions that could help other transitioning economies refine and enhance their tax systems. This study not only deepens the academic understanding of tax administration reforms but also offers practical insights that are crucial for policymakers engaged in similar reform initiatives.