Kyrgyzstan crypto mining tax collection falls 50% year-over-year in 2024

A 2024 Kyrgyz government report revealed that crypto mining taxes alone contributed around $535,000. This value has almost halved compared to last year’s crypto mining tax collection.

According to the budget document published by the Kyrgyz Ministry of Economy and Finance, cryptocurrency mining taxes have fallen by 50% this year.

Crypto mining tax collections amounted to over 46.6 million Kyrgyz soms this year, or about $535,000. Meanwhile, last year’s crypto mining tax collection reached 93.7 million soma, or approximately $1.08 million.

Not only that, local media outlet 24.kg reported that the Ministry of Finance detected a decrease in tax revenues from crypto miners in the last seven months. Since August, revenue from crypto mining tax in the first half of 2024 has decreased by approximately 30% compared to the same period in 2023.

This decline in tax revenue from the crypto mining industry in Kyrgyzstan seems surprising considering that the region is known as a prime target for crypto mining due to its untapped renewable energy resources in the form of hydroelectric resources.

The results of the Kyrgyz Ministry of Economy and Finance regarding crypto mining tax revenue at the end of this year are in stark contrast to the beginning of the year.

As previously reported by Crypto.news on January 5, the Ministry of Finance’s report revealed that revenue from crypto mining taxes amounted to 78.6 million soms (about $883,000) in the first months of 2023.

This amount was a significant jump compared to the 2022 tax revenue collected in the same period last year, which reached only 11.1 million soma ($133,200). Kyrgyzstan’s crypto mining tax rate accounts for approximately 10% of the electricity charge used by crypto miners in the country, which currently includes value added tax and sales tax.