, 2023-01-14 12:00:00,
Cryptocurrency miners in Kazakhstan are paying more for their energy this year, as the government moves to encourage the use of renewables and curb the excessive electricity use that is contributing to shortages. Under a new tax code that came into force on January 1, Astana introduced a sliding scale for a previously flat surcharge on energy use for cryptocurrency miners that first came into force last year.
The surcharge depends on the average price they pay to produce the coins over a given tax reporting period. The cheaper the electricity, the larger the surcharge.
For example, if the producer pays 24 tenge, worth around $0.05, or more per kilowatt hour, the surcharge remains at 1 tenge. If they pay 5-10 tenge, the surcharge will hit 10 tenge.
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Cryptocurrency miners pay varying rates because they purchase spare capacity from power plants via auction. Those using renewables will continue to pay a flat rate of 1 tenge.
President Kassym-Jomart Tokayev ordered the government to review the surcharge back in February 2022, when he said 1 tenge was a “pitifully small” amount for miners who are reaping large profits.
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