A report on the Kyrgyz government in 2024 found that crypto mining taxes only contributed around $535,000. This value has dropped by almost half compared to crypto mining tax collection last year.
According to a budget document released by the Kyrgyz Ministry of Economy and Finance, taxes on cryptocurrency mining have fallen by 50% this year.
Tax revenue for crypto mining this year was over 46.6 million Kyrgyzstani soms, worth around $535,000. Meanwhile, tax collections for crypto mining last year amounted to 93.7 million som, worth about $1.08 million.
Additionally, local media outlet 24.kg reported that the Ministry of Finance has noted a decline in tax revenue from crypto miners over the past seven months. Since August, crypto mining tax revenues have fallen by almost 30% in the first half of 2024 compared to the same period in 2023.
This decline in tax revenue from the crypto mining sector in Kyrgyzstan is surprising considering that the region is known as a prime crypto mining destination due to its vast wealth of untapped renewable energy in the form of hydroelectric resources.
The results achieved by the Kyrgyzstan Ministry of Economy and Finance in terms of tax revenue from crypto mining at the end of this year are in stark contrast to how the year began.
As crypto.news previously reported on January 5, the Finance Ministry report revealed that crypto mining tax revenues in the first few months of 2023 amounted to 78.6 million som (around $883,000).
This amount was a significant jump compared to tax revenue in 2022, which only reached 11.1 million soms…
