Kazakhstan’s government is planning to raise the tax burden on cryptocurrency miners. They also plan to tie the new rate with the price of the newly minted cryptocurrency. Authorities in Nur-Sultan think that this approach will have a positive impact on the state budget.
Kazakhstan Miners to pay Tax on Value of Exctracted Crypto
Kazakhstan will increase tax revenue for cryptocurrency mining entities. The Minister of National Economy Alibek Kuantyrov stated that Kazakhstan plans to tax cryptocurrency mining companies based on their market value.
Tengrinews.kz reports that the government official stated that such a program would boost budget receipts. The surcharge is currently charged to miners in Kazakhstan for electricity consumed.
Last summer, mining companies were required to pay higher prices than the rest of their customers. A fee of one Kazakhstani tenge (1. $0.0022 per kilowatt hour of electricity used by energy-intensive industries. Kuantyrov made these remarks at this week’s press conference:
The tax burden on miners could be increased. Additionally, at the moment we’re considering linking the tax rate paid by miners with the price of cryptocurrency. Cryptocurrency will grow, which is good news for the budget.
During a government meeting in February, President Kassym-Jomart Tokayev tasked officials to “multiply” the tax levy on crypto mining. The head of state also ordered the nation’s financial watchdog to identify all mining facilities in the country and check their tax and customs documents.
Kazakhstan was a hot spot for miners of bitcoin last year due to its low electricity prices. China then launched an offensive nationwide against the industry in May. The influx of miners has been blamed for the country’s growing power deficit, and the Kazakh government started to clamp down on the sector.
Power cuts affected even authorized miners during winter months. Some companies have had to relocate abroad due to electricity scarcity.
Recent reports revealed that tax loopholes are being exploited by authorities to pursue crypto miners. Five miners were charged with taking tax advantages offered by IT companies and other businesses involved in innovation development.
What do you think Kazakhstan’s tax policy will be? Leave a comment below.
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