ANALYSIS OF THE EFFICIENCY OF TAX COLLECTION IN BALOCHISTAN BASED ON THE DEA-TOBIT MODEL UNDER THE BACKGROUND OF BIG DATA INFORMATIZATION

Abstract

This research investigated the technical efficiency of tax collection units in Balochistan, Pakistan, utilizing a two-stage DEA-Tobit model. The study was motivated by the province's persistent fiscal deficits and the ongoing transition from manual, fragmented tax administration to a data-driven digital system. Data from 15 district tax offices was analyzed. The DEA results revealed an average technical inefficiency of 30%, primarily driven by managerial factors rather than scale. The Tobit regression identified that the adoption of digital systems (big data informatization) significantly enhances efficiency, while institutional fragmentation significantly hinders it. The study concludes that investment in digital infrastructure and the consolidation of tax agencies are imperative for improving fiscal capacity in Balochistan.