<![CDATA[This study aims to analyze the effect of levies and illegal levies (pungli) on the income of Micro, Small, and Medium Enterprises (MSMEs) in Sengeti Village, Muaro Jambi Regency. MSMEs play a significant role in the regional economy, but in their implementation, they often face various cost burdens that can affect the level of business income, including regional levies and illegal levies. This study uses a quantitative approach with a survey method. Data were obtained by distributing questionnaires to 50 MSMEs who served as research respondents. The data analysis technique used was multiple linear regression analysis with the help of the SPSS application. The results of the study indicate that levies have a negative and significant effect on MSME income. This indicates that increasing the burden of levies can reduce the net income received by business actors. In addition, illegal levies also have a negative and significant effect on MSME income, even having a more dominant effect than levies. The results of the simultaneous test show that levies and illegal levies together have a significant effect on MSME income. This finding indicates that costs arising from official and unofficial levies can reduce business profits and affect the sustainability of MSMEs. Therefore, more effective levy management and strict oversight are needed to prevent illegal levies, thereby creating a conducive business climate, increasing MSME revenues, and supporting sustainable economic growth.]]>
