Tax Revenue from Miners in Kyrgyzstan Drops by 50%

In 2024, cryptocurrency mining taxes contributed over 46.6 million Kyrgyz soms ($535,000) to Kyrgyzstan’s budget, according to the Ministry of Economy and Finance.

However, local media reports indicate a 50% year-over-year decline in this figure. In 2023, miners paid 93.7 million soms (over $1 million) in tax contributions.

The tax rate in Kyrgyzstan is set at 10% of the electricity costs incurred by cryptocurrency miners, including VAT and sales tax.

According to the International Energy Agency’s statistics, over 30% of the country’s total electricity supply comes from hydroelectric power plants. However, only 10% of this potential has been developed to date.

In 2021, Kyrgyzstan’s Cabinet of Ministers approved new electricity tariffs that included increased rates for cryptocurrency mining operations.

In June 2023, the country’s president authorized the placement of a mining farm at a hydroelectric plant capable of generating 120 MW of electricity.