The article is devoted to the theoretical and practical aspects of modernizing the modern tax system through tax mechanisms. The tax mechanism has successfully demonstrated its effectiveness in solving environmental problems, as evidenced by a significant decrease in atmospheric pollution, despite the concomitant decrease in excise revenues to the treasury. One of the most important areas of tax reform should be to achieve a balance between the interests of the state and the interests of business. In implementing this area, it is important to avoid legal conflicts, which will also require significant efforts. Additionally, it is crucial to consider the economic aspects of any tax reform, including the costs associated with its implementation. It is very important to prevent a situation where the costs of conducting and administering the program are significantly higher than the tax revenue generated.