Digitalization Of The Tax System And Its Efficiency

This article examines the digitalization of the tax system in the Republic of Uzbekistan and evaluates its effectiveness based on modern economic approaches and statistical data. The study analyzes the role of digital technologies in improving tax administration, increasing state budget revenues, and ensuring transparency in economic processes. Particular attention is given to reforms implemented in recent years, including the introduction of electronic tax services, online monitoring systems, electronic invoicing, and automated reporting mechanisms.The research is based on empirical observations, statistical analysis, and institutional evaluation using the legal framework, including the Tax Code of the Republic of Uzbekistan. The findings indicate that digitalization has significantly simplified tax administration, reduced administrative costs for taxpayers, minimized the human factor, and strengthened tax discipline. Moreover, the study highlights that digital technologies have contributed to the reduction of the shadow economy and ensured stable growth in tax revenues during 2020–2024.  At the same time, the article identifies key challenges in the digitalization process, such as insufficient technical infrastructure, cybersecurity risks, and low levels of digital literacy in certain regions. Based on the analysis, practical recommendations are proposed to further enhance the efficiency of the tax system through deeper digital integration, the application of artificial intelligence and big data technologies, and the strengthening of cybersecurity measures. Overall, the digitalization of the tax system is recognized as a crucial factor in ensuring sustainable economic growth and improving public financial management.