Abstract

The escalation of the poverty rate has emerged as a significant concern, intensifying over time and necessitating attention from contemporary research endeavours and policymakers. Consequently, this current study scrutinizes the ramifications of various business taxes, namely export tax, profit tax, goods and services tax, international trade tax, capital gain tax, and property tax, on the poverty rate in Indonesia. Employing the World Development Indicators (WDI), this article extracts secondary data spanning the period from 1991 to 2022. Additionally, the research employs the Dynamic Auto-regressive Distributed Lags (DARDL) approach to explore the relationships among the variables. The findings underscore a positive correlation between export tax, profit tax, goods and services tax, international trade tax, capital gain tax, and property tax with the poverty rate in Indonesia. Consequently, policymakers and researchers are equipped with guidance to mitigate the poverty rate by curbing property and business taxes.