The government of Kazakhstan is considering two proposals at once aimed at restricting miners: raising electricity prices and imposing a tax on mining equipment.
During the discussion of the draft law “On Digital Assets in the Republic of Kazakhstan”, the country’s Vice Minister of Finance Marat Sultangaziyev proposed to increase electricity prices for miners from $0.0023 per 1 kWh to $0.01 – by about 335%.
In addition, he proposed a tax on mining equipment, citing the example of casinos where every table is taxed whether or not it is used. The vice minister also proposed removing the VAT exemption for mining equipment.
All restrictions on mining activities, according to Sultangaziyev, are now of a notification nature, and in fact this industry is not regulated in any way. He declared:
“In terms of taxes, there will be a combined rate, a combined tax. This is an increase in the rate itself – now it is 1 tenge per kilowatt, and we propose to increase it to 5 tenge per kilowatt.”
Kazakhstan is considered the most attractive country for miners precisely because of electricity prices. The hashrate of the Bitcoin network dropped by about 13.4% when power went out in Kazakhstan during the unrest in the country. Then the deputy of the Spanish Congress Maria Muñoz (María Muñoz) turned to the government with a proposal to invite Kazakh miners to Spain.
Source: Bits
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