Abstract
This study aims to evaluate the role of tax mechanisms in promoting the development of the service sector within the framework of a green economy in Uzbekistan. It focuses on how tax incentives and environmental fiscal policies influence sustainable business practices. The research employs a mixed-method approach combining comparative analysis and econometric evaluation. Service enterprises implementing green technologies are compared with conventional firms. Statistical and analytical tools are used to assess the relationship between tax incentives and enterprise performance. The results indicate that tax incentives significantly contribute to the adoption of green technologies in the service sector. Enterprises benefiting from reduced tax rates show higher efficiency, profitability, and environmental performance. A negative relationship between tax burden and green investment is observed. The study proposes a differentiated tax framework tailored to the service sector, integrating environmental sustainability into fiscal policy design in developing economies. The findings suggest that policymakers should expand tax incentives and introduce environmentally differentiated tax systems to accelerate green economic transition. The study is limited by data availability and regional focus. Future research should include cross-country comparisons and sector-specific datasets.