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Ministry of Economy proposes to introduce taxes on cryptocurrency mining

The Ministry of Economy of Kyrgyzstan plans to amend the Tax Code and introduce fees in the field of cryptocurrency mining. The corresponding draft government decree has already been submitted for public discussion.

It is noted that such a measure will increase budget revenues. Cryptocurrency mining tax will be paid in return for income tax, VAT on taxable supplies and sales tax. The tax rate is set at 15 percent of the electricity consumption during mining, including VAT and sales tax.

There are about 80,000 technical devices in Kyrgyzstan that allow cryptocurrency mining.

According to estimates of the Ministry of Economy, their monthly income may reach $ 13.08 million, or 913 million soms, and the electricity costs — 228 million soms.

«Introduction of the tax at a rate of 15 percent of the amount of energy costs, taking into account the calculations, will increase the state budget by 346.8 million soms per year. In case of introduction of the proposed approach, the tax burden on income will be 3.1 percent for a year,» the Ministry of Economy stressed.