A proposal from the Kazakh government aims to introduce a flat tax of 15% on cryptocurrency mining. The plan will use any money raised by the tax to help tackle the country’s COVID-19 crisis.
According to Forbes, the Commerce Department hopes to fight COVID-19 by financing countermeasures through the collection of these taxes. This is a departure from the nation’s previous statements, which indicated a different position on the country. Officials said approximately 6% of the world’s Bitcoin (BTC) hash rate comes from Kazakhstan.
The new electricity tariff
The report adds that the government is trying to regulate cryptocurrency mining activities in accordance with the country’s recently introduced new electricity tariff regulations.
Forbes explains that the accumulated tax revenues will help rebuild the country’s “infrastructure” and combat the impact of the epidemic on the Kazakh economy.
There is an increase in cryptocurrency mining activity near the Republic of Abkhazia, although it has been illegal since 2018. Customs reported that more than $ 589,000 in mining devices have crossed the country’s borders in the past six months.