Norway to cancel electricity benefits for miners

According to officials, in this case, the budget revenues will increase by $14 million already this year

08.10.2022 - 10:55

703

2 min

What’s new? The Norwegian government is considering a proposal to cancel the preferential electricity tax rate for cryptocurrency mining data centers. The executive branch in Oslo argues that conditions have changed and the country needs the energy that miners currently use. According to the government, the tax rate on electricity for mining farms will be raised to the level at which other service industries are taxed.

Information on BTC.com

What does the government say? Finance Minister Trygve Slagsvold Vedum explained the reason behind the move:

“We are in a completely different situation in the power market now compared to when the reduced rate for data centers was introduced in 2016.”

According to Vedum, there has been an increased demand for power in many areas, resulting in higher prices. At the same time, the cryptocurrency mining sector has expanded in Norway. According to him, power is necessary for the community, so the government will stop using the preferential scheme.

Officials estimate that the cancellation of the preferential rate will immediately increase budget revenues by 150 million Norwegian kroner (more than $14 million), and next year the move will bring another 110 million kroner (more than $10 million).

In April, analyst firm Arcane Research reported that Norway increased 1% of the world's bitcoin hashrate by using only renewable energy sources.

In August, the Norwegian mining company Kryptovault announced the transfer of capacity beyond the Arctic Circle. The decision was made amid rising electricity prices.

In July, the Swedish Ministry of Energy announced that the miners would be provided with electricity on a residual basis because the country needed the resource “for more useful things than bitcoin.”

Author: