THE ROLE OF TAX POLICY IN PROMOTING ECO-INNOVATION IN UZBEKISTAN’S SERVICE SECTOR

Abstract

This article explores the intersection of taxation and innovation within the context of Uzbekistan’s green economy transition. It argues that effective tax policy design can significantly stimulate eco-innovation in the service sector by reducing financial barriers and incentivizing sustainable practices. Using the IMRaD (Introduction, Methods, Results, and Discussion) structure, the study analyzes current tax instruments in Uzbekistan, evaluates their impact on green services, and proposes policy improvements aligned with international best practices. The findings suggest that targeted tax incentives—such as R&D deductions, green investment allowances, and VAT exemptions for eco-friendly services—can accelerate the country’s green transformation while enhancing fiscal sustainability.