An efficient taxation system enhances small and medium industries to generate productivity-increasing investments, directly raising the GDP per capita. Strong tax incentives to the traders facilitate the pace of business activities and boost the business community’s confidence. However, the government is digitally transforming the taxation system by adopting new digital techniques and offering taxpayers support to make a stimulated and professional workforce. The government simplifies tax laws and develops an honest and efficient tax administration through electronic means to raise government revenue. These approaches will improve the country’s tax collection mechanisms, which can also be used for public development programmes. Without taxes, the government doesn’t have enough resources to pay for the public goods and services everyone depends on.
Countries that adopt new technologies to aid tax administration will likely boost revenues more quickly without amending the existing rules and regulations. Introducing digital technologies in the taxation system will reduce transaction costs and enhance transparency by eliminating barriers that normally discourage taxpayers. These new technologies like big data, blockchain, biometrics, and artificial intelligence will improve tax administration, provide better service to taxpayers, and better monitor taxpayer compliance. Such initiatives will effectively mobilise resources to improve services and enhance taxpayer compliance. Technologies offer low-hanging tax policy and administrative measures to help the government enhance revenue collection.
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