Arweave (ar) 
Kyrgyzstan Sees 50% Drop in Crypto Mining Tax Revenue in 2024
Kyrgyzstan’s Ministry of Economy and Finance has reported a significant decline in crypto mining tax revenue for 2024. According to a budget document, the country’s cryptocurrency mining taxes have fallen by 50% this year, amounting to around $535,000. This is a substantial drop from last year’s crypto mining tax collection of $1.08 million.
Crypto Mining Tax Revenue Decline
The decline in tax revenue from the crypto mining sector is attributed to 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 has gone down by nearly 30% compared to the same period in 2023. This decrease is unexpected, given Kyrgyzstan’s reputation as a prime destination for crypto mining due to its abundant renewable energy in the form of hydroelectric resources.
Contrast to Previous Years
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. In January, the Finance Ministry reported that revenue from crypto mining taxes amounted to around $883,000 during the first months of 2023. This was a significant increase from the 2022 tax revenue, which only reached $133,200 collected in the same period.
Crypto Mining Tax Rate
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. This tax rate is designed to encourage the growth of the crypto mining sector while generating revenue for the government.
The decline in crypto mining tax revenue in Kyrgyzstan highlights the challenges faced by governments in regulating and taxing the crypto industry.
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