LDPR deputy says Russian miners are keen to pay taxes

In 2021, Russia will mine bitcoins worth $2 billion, but in the absence of dedicated tax legislation the budget will not receive a single kopeck. This was reported by сообщает REGNUM News Agency, citing a statement by LDPR faction deputy Andrey Lugovoy.

According to him, 328 000 BTC are mined worldwide annually, and 35 000 BTC in Russia (more than $2.3 billion at the time of writing).

“Miners annually enrich themselves by $2 billion at the expense of the population and do not pay taxes, although they very much want to do so,” the parliamentarian said.

He noted that mining profits are aided, among other things, by cheap electricity tariffs for the population.

“In Irkutsk Oblast, the lowest electricity tariff, individuals do not sign agreements with grid companies. And now imagine: our tariffs for the population are subsidised by the state, the budget, and industrial companies,” the deputy said.

Lugovoy describes it as «ужасным» that mining is still not part of the All-Russian classifier of entrepreneurial activity.

“This is especially important when individual residents in apartments and garages attempt to produce it,”

The forthcoming tax bill, according to the lawmaker, is aimed at transparency of miners’ activities, protection of entrepreneurs and additional revenues to the budget.

“We believe that we are creating a grey zone that yields a number of unpleasant consequences for the state, so we must decide. Either we prohibit it, or we move toward some regulation,” Lugovoy said.

He added that deputies are considering both a separate normative act on mining taxation and amendments to the law “On Digital Financial Assets.”

Earlier the LDPR faction announced the drafting of a law regulating cryptocurrency mining.

As reported in November, representatives of several Russian ministries supported the initiative to recognise mining as a form of entrepreneurial activity.

Mining is not currently prohibited in Russia, but its regulation has not been codified.

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