<![CDATA[This research analyzes the impact of adjustments to Income Tax (PPh) rates on state revenue and public purchasing power in Indonesia, particularly in the context of post-COVID-19 economic recovery. Employing a Systematic Literature Review (SLR), the study examines the effects of PPh rate changes on investment, state revenue, and public consumption. The findings indicate that while reduced corporate and final PPh rates can boost investment and tax compliance, they also carry potential negative consequences such as decreased consumption and sectoral disparities, including the crowding out effect. The dualistic structure of the Indonesian economy reveals that tax policy impacts are unevenly distributed, posing challenges for post-pandemic economic recovery. Therefore, the government should formulate responsive and adaptive tax policies, integrating social protection programs to mitigate potential adverse effects. By understanding the interactions between tax rates, consumption, and investment, this research provides insights into Indonesia's tax dynamics, serving as a reference for policymakers to create more effective and responsive tax policies that address economic challenges.]]>
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