Hydroelectric power plants and mining: tax revenues in Kyrgyzstan fell by half

In 2024, taxes on cryptocurrency mining in Kyrgyzstan brought more than 46.6 million Kyrgyz soms ($535,000) to the budget. This is stated in the report of the Ministry of Economy and Finance of the Kyrgyz Republic.

However, according to local media, the figure fell by 50% year-on-year. In 2023, miners transferred 93.7 million soms (more than $1 million) of tax deductions.

The tax rate in Kyrgyzstan is 10% of the fee for electricity consumed by cryptocurrency miners, including VAT and sales tax. Miners do not pay anything to the local budget.

Recall that in July 2023, the president of the country authorized the placement of a mining farm at a hydroelectric power station. Suspicions have been repeatedly voiced in the Parliament of Kyrgyzstan that the country’s hydroelectric power plants are widely used by illegal mining farms to the detriment of the population’s energy supply.