A report on the 2024 Kyrgyz government revealed crypto mining taxes contributed only around $535,000. This value dropped by nearly half compared to last year’s crypto mining tax collection.
According to a budget document released by the Kyrgyzstan Ministry of Economy and Finance, cryptocurrency mining taxes have fallen by 50% this year.
Crypto mining tax collection amounted to over 46.6 million Kyrgystani soms this year or worth around $535,000. Meanwhile, last year’s crypto mining tax collection reached 93.7 million soms, worth around $1.08 million.
Not only that, local media outlet 24.kg reported that the Ministry of Finance found a decrease in tax receipts from crypto miners in the last seven months. Since August, the revenue accumulated from the crypto mining tax within the first half of 2024 went down by nearly 30% compared to the same period in 2023.
This decrease in tax revenue from the crypto mining sector in Kyrgyzstan comes as a surprise, considering the region is known as a prime destination for crypto mining due to its massive trove of untapped renewable energy in the form of hydroelectric resources.
The results achieved by Kyrgyzstan’s Ministry of Economy and Finance regarding crypto mining tax revenue at the end of this year are a stark contrast to how the year began.
As previously reported by crypto.news on Jan. 5, the report Finance Ministry revealed that revenue from crypto mining taxes amounted to 78.6 million soms (around $883,000) during the first months of 2023.
This sum was a significant leap when compared to the 2022 tax revenue which only reached 11.1 million soms ($133,200) collected in the same period last year. Kyrgyzstan’s crypto mining tax rate makes up around 10% of the electricity fee used by crypto miners in the country, which already includes value-added tax and sales tax.
Read the full article here