<![CDATA[This study aims to analyze the effect of Value Added Tax (VAT) and Income Tax (PPh) on Energy Subsidies and their impact on Economic Growth in Indonesia for the 2009-2023 period. The data used in this study are secondary data in the form of time series sourced from the Central Statistics Agency (BPS) and the State Budget (APBN). The analytical method used is path analysis to examine the direct and indirect effects between variables. The results of the study indicate that partially, VAT has a positive but insignificant effect on energy subsidies. Conversely, Income Tax has a positive and significant effect on energy subsidies, indicating that PPh is the main supporter in funding government subsidy expenditures. Regarding economic growth, it was found that VAT has a positive but insignificant effect, while Income Tax has a negative and insignificant effect. The energy subsidy variable was found to have a negative and significant effect on economic growth, indicating a budget burden and inefficiency if subsidies are not properly targeted. The results of the path analysis also revealed an indirect effect. VAT through energy subsidies has a negative effect of -0.0319 on economic growth. Similarly, income tax through energy subsidies has a negative indirect effect of -0.6063 on economic growth. Simultaneously, VAT and income tax explain 96.82% of the variation in energy subsidies, while the contribution of all independent variables to economic growth is 86.62%.]]>
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