Akademik Məlumat İdarəetmə Sistemi
no.1, pp.43-51, 2025 (Peer-Reviewed Journal)
This article examines the theoretical and practical aspects of developing green finance and greening tax policy. It demonstrates the role of the state and the financial sector in shaping a sustainable economic model that combines economic growth with environmental protection. Key challenges in implementing environmental taxes and ways to improve them are highlighted. The study focuses on government fiscal regulation tools aimed at encouraging organizations to reduce their negative environmental impact. The aim of this study is to identify opportunities for tax incentives to green the economy and develop recommendations for the further development of relevant tax instruments. The research was conducted using general scientific methods, such as systems and situational analysis, generalization, synthesis, and logical and descriptive methods. Based on the results of the study, tax measures aimed at addressing pressing environmental issues were proposed for the financial and economic activities of organizations. Allowing free depreciation of equipment operated using best available technologies will provide an additional incentive for their implementation and reduce the negative impact of production processes. Reducing the VAT rate on recycled goods will lead to increased demand, the popularity of such products, and the development of a circular economy.