The president of Kazakhstan, Kassym-Jomart Tokayev signed a law providing for differentiated tax rates on mining.
The rate is determined according to the average price of electricity during the reporting period:
- at a cost of 5–10 tenge per kWh, the tax rate will be 10 tenge;
- 10–15 tenge per kWh — rate 7 tenge;
- 15–20 tenge per kWh — rate 5 tenge;
- 20–25 tenge per kWh — rate 3 tenge;
- 25 tenge and above per kWh — rate 1 tenge.
When using renewable energy sources, regardless of electricity cost, the tax rate for miners will be 1 tenge per kWh.
The law is intended to “equalize the load and deter the consumption of self-generated electricity”.
Back on 1 January 2022, Kazakhstan introduced an additional tax of 1 tenge per kWh of electricity consumed by mining.
In February, President Tokayev urged raising the tax on cryptocurrency mining. The Ministry of Economy proposed to raise the rate tenfold, and floated plans to link miners’ tax to the price of cryptocurrencies.
In May, a bill touching mining taxation passed in the first reading.
Against the backdrop of higher taxes and electricity supply constraints, many players in the mining business have begun leaving Kazakhstan.
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