Digitalization and Efficiency of the Beninese Tax Administration

Abstract

This paper aims to assess the effectiveness of the Beninese tax administration in the context of digitalization. Specifically, it seeks to determine the efficiency levels of various tax centers and evaluate the impact of digitalization on the efficiency of the Beninese tax administration. Using monthly panel data spanning from 2017 to 2023, a DEA model is employed to calculate efficiency scores. Subsequently, a censored Tobit model is utilized to examine the effect of digitalization on the efficiency of tax centers in Benin. The findings reveal average efficiency scores of 77.80%, 76.79%, 72.01%, 62.72%, 58.56%, 56.11%, and 46.16% for CIME Atlantique, CIME Ouémé Plateau, CIME Borgou Alibori, CIME Zou Collines, DGE, CIME Littoral1, and CIME Littoral 2, respectively. Moreover, digitalization, tax population, and additional taxes resulting from documentary audits positively influence the efficiency of tax centers. Conversely, the number of staff, the agent's directory, staff expenses, and the coverage rate of general accounting audits negatively affect the efficiency of tax centers. Decision-makers must prioritize enhancing the efficiency of tax administrations, expanding the tax base, and ensuring comprehensive tax control coverage to fully capitalize on the benefits of digitalization.