PANews reported on December 27 that according to a budget document released by the Kyrgyz Ministry of Economy and Finance, the tax contribution of crypto mining in 2024 will be 46.6 million soms (about US$535,000), a decrease of more than 50% from 93.7 million soms (more than US$1 million) in 2023 .
The country imposes a mining tax rate of 10% of the electricity bill on crypto miners, including VAT and sales tax. Although Kyrgyzstan is seen as an ideal place for mining due to its abundant untapped renewable energy, the decline in tax revenue may be related to the reduction in mining activities. According to data from the International Energy Agency, 30% of the country's energy supply comes from hydropower, but only 10% of its hydropower potential has been developed.
