STRUCTURAL FEATURES OF TAX ADMINISTRATION IN KYRGYZSTAN: AN ANALYTICAL REVIEW OF FISCAL PERFORMANCE
DOI:
https://doi.org/10.60022/sis.3.(01).8Keywords:
tax administration, fiscal performance, digitalization, audit enforcement, Kyrgyzstan, revenue mobilization, econometric analysisAbstract
Tax administration is an important element of sustainability and an important channel for resource mobilization for economic development and public service delivery in developing economies like Kyrgyzstan. In this article the relationship between structural characteristics of tax administration and fiscal performance in Kyrgyzstan during 2020–2024 are studied. The study is highly relevant to the govt as the country continues to embark on reform to address compliance gaps, administrative inefficiencies and the fast-growing need for digital governance. The research examines the impact of major administrative variables (digitalization of services, staffing capacity, decentralization of tax collection and audit activity) on tax revenue performance, expressed in percent of GDP by means of a time series econometric model.
National institutions were used to collect data, while data were then collected from international databases which author analyzed using Stata and Python and used in regression analysis. The results point towards clear positive associations between structural developments and fiscal performance: tax revenue rises from 20,5% to 22,8% of GDP from 2020 to 2024, digital filing of tax returns increases from 45% to 81%, audit coverage increases from 5,0 to 6,9 per 1,000 taxpayers and staff per 10,000 taxpayers increases from 7,5 to 8,6.
The unique aspect of the study is an integrated approach using administrative performance indicators together with macroeconomic variables to deliver a national analysis. The results corroborate that administrative modernization, in particular digitalization and capacity to enforce, has significantly advanced fiscal performance. Further research should include regional disaggregation and behavioral factors — tax morale and institutional trust — to enhance further the knowledge of the dynamic of the tax compliance in Kyrgyzstan and similar contexts.
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