Published: 15.04.2022
Article reading time:
1 min.
The government of Kazakhstan plans to increase tax collections from mining and tie the rate to the value of the cryptocurrency.
The Minister of National Economy of Kazakhstan, Alibek Kuantirov, said that the country’s authorities are considering the possibility of raising the tax for mining companies. The tax will be calculated based on the market value of the mined cryptocurrency. The minister assured that the implementation of the initiative would significantly increase revenues to the country’s budget.
Now Kazakh miners pay only a surcharge for the energy they consume. Last summer, they were forced to pay more than other consumers – tariffs were raised to 1 tenge ($0.0022) per kWh of electricity.
The Minister of Economy said that linking the tax rate to the value of the cryptocurrency means that if the prices for a particular mined asset increase, the state will receive more money to the budget.
Fixed electricity tariffs made Kazakhstan an attractive jurisdiction for bitcoin mining companies when the PRC authorities took up arms against the industry last year. Due to the large influx of miners in Kazakhstan, the shortage of electricity has increased and the government of the republic began to limit this sector of the economy. Even authorized miners suffered last winter due to power outages.
Earlier, the regulatory authorities of Kazakhstan closed five state-subsidized mining companies. They enjoyed tax breaks as innovative start-ups.
Source: Bits
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