The President of Kazakhstan signed a law on increasing taxes for miners

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President of Kazakhstan Kassym-Jomart Tokayev signed a legislative act amending the country’s Tax Code. The amendments provide for increased tax rates for miners.

Changes to the existing law “On taxes andother mandatory payments to the budget” introduce differentiated tax rates for cryptocurrency mining. Fees will be determined based on the average price of electricity consumed for mining during a given tax period. 

They start from 1 Kazakhstani tenge ($0.002) per kWh and can reach 10 tenge if the electricity tariff was in the range of 5-10 tenge ($0.011-0.021). At the same time, miners using electricity from renewable sources will pay the lowest rate.

In February, the government of Kazakhstanconsidered two proposals aimed at limiting miners by increasing electricity prices and introducing a tax on mining equipment.

Kazakhstan is trying to limit the extraction of digitalcurrencies, introducing restrictions on the supply of electricity during the cold winter months and closing mining farms in some regions of the country. These measures forced many companies to close their plants and move to other countries.

At the end of June, Tokayev said that he was dissatisfied with the level of acceptance of cryptocurrencies in Kazakhstan and instructed officials to ensure the development of the cryptocurrency industry.