President of Kazakhstan Kassym-Jomart Tokayev signed a law providing for the introduction of differentiated mining tax rates.

The rate is determined based on the average electricity price for the reporting period:

• At a cost of 5-10 tenge per 1 kWh, the tax rate will be 10 tenge;
• 10-15 tenge per 1 kWh – rate 7 tenge;
• rate of 15-20 tenge – 5 tenge per 1 kWh;
• 20-25 tenge per 1 kWh – rate 3 tenge;
• 25 tenge and above for 1 kWh – the rate is 1 tenge.

Regardless of the cost of electricity when using renewable resources, the tax rate for miners will be 1 tenge per 1 kWh.

The law was designed to “equalize the load and discourage consumption of its own electricity”.

Recall that from January 1, 2022, Kazakhstan imposes an additional tax fee of 1 tenge per 1 kWh of electricity consumed during mining.

In February, President Tokayev ordered an increase in the tax on the production of cryptocurrencies. The country’s Ministry of Economy has proposed to increase the rate by 10 times and also announced that it plans to tie the tax fee for miners to the cost of cryptocurrencies.

A bill affecting the taxation of mining was passed at the first reading in May.

Against the background of tax increases and restrictions on electricity supply, many representatives of the mining industry began to leave Kazakhstan.

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