Optimizing the Tax System to Support Eco-Friendly Service Businesses in the Transition to a Green Economy

This study aims to analyze how tax system optimization can support eco-friendly service businesses in the transition to a green economy, focusing on improving sustainability and enterprise performance. The research applies a mixed-method approach combining comparative analysis and econometric evaluation. Secondary data from Uzbekistan’s service sector is used to assess the impact of tax incentives on green business performance. The results indicate that tax incentives significantly enhance the adoption of eco-friendly practices. Businesses benefiting from tax reductions demonstrate higher profitability, increased green investments, and improved efficiency. The study develops a conceptual framework linking tax optimization with sustainable service sector growth in developing economies. Policymakers are encouraged to implement differentiated tax policies and expand incentives for green businesses to accelerate sustainable development. The study is limited by data availability and regional scope. Future research should include broader datasets and cross-country comparisons.