Digital Transformation Challenges in Tax Administration in Libya: A Perspective from Benghazi Tax Authority Employees

Abstract

This study aimed to assess and identify the prominent challenges facing the digital transformation process in the Libyan tax administration, focusing on the perspective of the employees at the Tax Authority in Benghazi. To achieve the objectives of the study, a descriptive-analytical approach was utilized, and data were collected via a questionnaire distributed to a representative sample of (52) employees. The study applied descriptive and inferential statistical methods using SPSS, including normality tests, the One-Sample Wilcoxon Signed Rank Test, the Kruskal-Wallis test for group differences, and Spearman's Rank Correlation coefficient. The results revealed that digital transformation challenges in the tax administration exist at a statistically significant high level, with human resources, training, and technical support challenges ranking as the highest priority, followed by financial challenges, legislative and legal challenges, and technical challenges. Furthermore, the findings indicated no statistically significant differences in employees' responses attributed to years of practical experience, whereas significant differences were found based on educational level in favor of diploma holders regarding the perceived intensity of challenges. Additionally, the correlation matrix demonstrated positive and significant correlations among the various dimensions of challenges, confirming the interdependence of technical, human, and financial factors affecting the path of digital transformation. Based on these findings, the study recommended formulating a national strategy for developing digital skills, intensifying continuous training programs, upgrading infrastructure and enhancing cybersecurity, issuing modern legislation regulating digital transactions and electronic signatures, and establishing a unified integrative digital platform alongside sustainable financial budgets to support automation and digitalization projects.