Improving the tax system efficacy and increasing tax transparency: solutions, challenges, and the smart future of taxation
Improving the tax system efficacy and increasing tax transparency: solutions, challenges, and the smart future of taxation

Summary/Abstract: This study examines the efficacy and transparency of Uzbekistan’s tax system through the lens of digital transformation, institutional capacity, and taxpayer behavior. As the nation transitions toward market-oriented governance, its tax architecture though showing early digital adoption since 2017 remains fragmented, reactive, and unevenly distributed across regions. Empirical analysis reveals a strong, statistically significant correlation between digital tool adoption and revenue efficiency (R² = 0.76, p < 0.001), positioning digitalization not merely as a technological upgrade, but as a systemic driver of fiscal resilience. Regional disparities particularly in Tashkent (82% digital adoption, 74.2% compliance) versus Fergana (51%, 62.1%) underscore the need for localized, culturally adapted interventions. Taxpayer satisfaction and institutional trust are strongly linked to digital adoption (r = 0.78) and education (r = 0.83), yet remain lower among younger, rural, and lower-income groups highlighting gaps in platform accessibility and user-centric design. Comparative analysis with peer economies (Georgia, Kazakhstan, Azerbaijan) reveals that while Uzbekistan’s tax-to-GDP ratio (17.8%) is competitive, its digital readiness (62%) and institutional capacity (6.8/10) lag behind. Regression modeling further confirms that digitalization is the most powerful predictor of revenue efficiency, outperforming traditional variables such as GDP growth or income level.

• Details
• Contents