Kazakhstan President Calls for Increased Taxes on Crypto Mining

Kazakhstan President

Kazakhstan President Kassym – Jomart Tokayev has called for a higher tax on crypto mining just weeks after a new levy on the industry took effect, local news sites reported Tuesday.

The current rate of 1 Kazakh tenge ($0.0023) per kilowatt of power is insignificant, Tokayev said, calling on the government to raise the tax as soon as possible and come up with a comprehensive crypto mining regulation proposal by April 1.

Kazakhstan‘s crypto industry tax   came into force on January 1.

New crypto mining tax in Kazakhstan

The new rate in Kazakhstan  could be as high as 5 tenge per kWh, and miners may have to pay import duties on their equipment, First Deputy Finance Minister Marat Sultangaziyev said, according to local media reports.

Cryptocurrency mining does not create many jobs and consumes large amounts of electricity, with some miners paying less for electricity than the public, the president said at a government meeting today. Imported equipment is also not taxed.

Kazakhstan crypto mining tax
This new tax would come just a few weeks after a new levy

Cryptocurrency miners flocked to Kazakhstan after China cracked down on the sector in 2021. The Central Asian country once had a surplus of electricity, but since the influx, the national grid has been struggling to meet demand.

The national grid operator cut power to all mines on January 21. The measure was supposed to last until the end of January, but the miners said that the electricity has not yet been restored.

The Kazakh government is also trying to crack down on “grey mining”, ie operations that are not properly registered or licensed.

The president instructed the Financial Control Agency to identify all mining companies and check their tax and customs records before March 19.