Improving Tax Administration and Increasing Tax Collection Efficiency

Abstract

Tax revenues constitute one of the principal sources of public finance and play a fundamental role in maintaining fiscal stability, financing public services, and supporting socioeconomic development. However, the effectiveness of taxation depends not only on tax rates and the structure of the tax system but also on the quality of tax administration. Even a well-designed tax system may generate insufficient public revenues if tax administration is characterized by complicated procedures, weak compliance mechanisms, inefficient information systems, limited analytical capacity, or inadequate interaction between tax authorities and taxpayers. Consequently, improving tax administration and increasing tax collection efficiency have become important priorities for countries seeking to strengthen fiscal sustainability and improve the business environment.[1]