Kazakh authorities approved differentiated tax rates for miners

Amendments to the Tax Code provide for different fees depending on the source and cost of energy consumed

25.05.2022 - 13:45

237

2 min

What’s new? The Parliament of Kazakhstan in the first reading supported the bill on amendments to the Tax Code, which will affect the sphere of cryptocurrency mining. The document provides for the introduction of differentiated tax rates for mining depending on the source and cost of energy consumed.

Information on the website of the Parliament of Kazakhstan

What do the authorities say? Minister of National Economy Alibek Kuantyrov said that such measures are aimed at “balancing the load and discouraging the consumption of our own electricity.” He explained:

“The lower the cost of electricity, the higher the rate of payment. For self-generated electricity from renewable sources, there are reduced rates at the level of existing ones.”

If miners will use renewable energy sources, they will be charged regardless of the cost of electricity, 1 tenge per 1 kWh.

What happened before? In mid-April, Kuantyrov said that the tax on cryptocurrency mining should be tied to the value of digital assets. According to the politician, this initiative could have a positive effect on the country's economy.

In early May, the Minister of Digital Development of Kazakhstan Bagdat Musin amended the rules for informing about mining activities. Individuals who plan to mine cryptocurrencies now need to notify the ministry and provide it with details.

In mid-March, the Kazakh police closed 106 illegal cryptocurrency mining farms as part of an operation to crack down on illegal mining. After the shutdown of illegal miners, the daily electricity consumption in the country decreased by 600 MWh.

Author: