Kazakhstan to Increase Tax for Miners, Considers Tying Levy to Crypto Prices – Mining Bitcoin News

fiverr
Kazakhstan to Increase Tax for Miners, Considers Tying Levy to Crypto Prices
Bybit


The government of Kazakhstan is preparing to increase the tax burden on cryptocurrency miners and intends to tie the new tax rate to the value of minted cryptocurrencies. The Nur-Sultan authorities believe that this approach will have a positive impact on the state budget.

Kazakh miners tax the value of cryptocurrencies extracted

Kazakhstan is taking steps to increase taxes on entities mining cryptocurrencies in the country. According to a statement from National Economy Minister Alibek Kuantyrov, the plan is to calculate taxes based on the market value of mined cryptocurrencies.

According to Tengrinews.kz, government officials pointed out that implementing such programs would increase budget revenue. Miners operating in Kazakhstan are currently paying a surcharge for the electricity they consume.

Last summer, mining companies had to pay more than other consumers. A fee of 1 Kazakhstani tenge (approximately $0.0022) per kWh of electricity used in energy-intensive industries has increased tariffs. In a press conference this week, Kuantyrov said:

Ledger

We are considering increasing the tax burden on miners. Currently, we are also looking at linking the miner’s tax rate to the value of the cryptocurrency. If cryptocurrencies grow, this will benefit the budget.

At a government meeting in February, President Kassym-Jomart Tokayev tasked officials with “increasing” taxes on crypto mining. The head of state also ordered the country’s financial regulator to identify all mining facilities in the country and to check their tax and customs documents.

Last May, China launched a nationwide offensive against the bitcoin industry, with Kazakhstan becoming a magnet for bitcoin miners due to capping electricity prices. The influx of miners has been blamed on the country’s growing power deficit, and the Kazakh government has begun cracking down on the industry.

During winter, even authorized miners are affected by power outages. Power shortages have forced some companies to leave the country and relocate to other mining destinations such as the United States. More than 100 coin minting farms closed across Kazakhstan last month.

A recent report revealed that authorities are going after crypto miners exploiting tax loopholes. Five mining entities are accused of taking advantage of tax incentives for IT companies and other companies involved in the development of innovations.

tags in this story

Bitcoin, Consumption, Crypto, Crypto Miners, Crypto Mining, Cryptocurrencies, Cryptocurrency, Deficit, Electricity, Increase, Kazakhstan, Levy, Miners, Mining, Power, Price, Rates, Shortage, Taxes, Taxes, Taxes, Values

Do you think Kazakhstan will significantly increase the tax burden on crypto miners? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.

More hot news

in case you missed it



Source link

Binance

Be the first to comment

Leave a Reply

Your email address will not be published.


*