DIGITAL TRANSFORMATION IN GOVERNMENT: CHATBOT FOR COMMUNICATING TAX EXEMPTION AMONG SELECTED USERS IN THE PHILIPPINES

Abstract

This is an exploratory descriptive study on the use of the Department of Finance's (DOF) TESA Chatbot to communicate tax exemption to selected diplomatic community members and international organisations using the DOF's Enhanced Tax Exemption System-Lite (TESlite). The TESA Chatbot aims to streamline the tax exemption process and contribute to DOF's digital transformation plan. Guided by the principles of Cybernetics theory, data were collected through key informant interviews with two industry experts and focus group discussions with seven TESA chatbot users. Before the deployment of the chatbot, communication difficulties included long waiting times, strict office hours, and health concerns during the pandemic. Through the chatbot, the users enjoyed the convenience of 24/7 availability, instant responses, and getting answers to their basic inquiries. However, challenges persist, such as the chatbot􀂶s limitations in handling complex queries and providing outdated information. Hence, the participants cited these opportunities for improvement: continuous updating of the system, incorporation of various languages, and expanding the chatbot􀂶s scope. Overall, the pilot TESA Chabot can be a supplement but not a replacement for human interaction and communication in applying for tax exemption online. The chatbot can be the first step for basic inquiries, but human intervention is still deemed highly important and preferred by applicants for special cases or complex queries. Suggestions to improve the pilot implementation are given.