THE IMPACT OF DIGITALIZATION ON ALGERIAN TAX ADMINISTRATION: IMPROVING EFFICIENCY AND REDUCING COSTS

Abstract

Objective: This study aimed to investigate the impact of digitalization on the efficiency and cost-effectiveness of the Algerian tax administration. Theoretical Framework: This study relies, in its theoretical aspect, on a comprehensive understanding of everything related to digitalization and the digitalization of tax administration, as well as a review of previous studies on the subject. Method: The study employed an analysis of the Algerian tax administration and its digital transformation process. It examined tax revenues and costs from 2013 to 2023. Results and Discussion: Digitalization led to a 70% increase in tax revenue and a 50% reduction in the cost of collecting one dinar. Digitalization enhanced the overall efficiency of the tax administration, as evidenced by the consistent surpassing of revenue targets in recent years. Research Implications: The findings suggest that digitalization can significantly improve the efficiency and effectiveness of tax administration systems. Policymakers and tax authorities in Algeria and other developing countries can benefit from the insights gained from this study to implement similar digital transformation initiatives. Originality/Value: The study contributes to the understanding of the impact of digitalization on tax administration in developing countries. It provides empirical evidence of the positive effects of digitalization on tax revenue and efficiency.