In Kyrgyzstan, they proposed to introduce a contract system for cryptocurrency miners

The cryptocurrency mining taxation mechanism in Kyrgyzstan wants to be simplified. This was said by MP Azamat Arapbaev within the dialogue of amendments to the Tax Code, writes the native newspaper Tazabek.

The present model of the doc supplies for a mining tax charge of 15%, which is calculated from the price of electrical energy. Arapbaev recalled that Kyrgyzstan’s losses within the vitality sector are 14%:

“That is primarily a theft of electrical energy. If a sure mining farm for 1 million kW / h winds up, then how will you calculate the tax? Isn't it higher to assign a tax to one laptop beneath a contract? Why management the facility engineers, how a lot they screwed up or how a lot they stole? ”

Deputy Minister of Economic system Bekbolot Aliyev believes that good meters will assist management the accounting of electrical energy spent on mining.

“Now (the tariff) is on the stage of two.14 soms (2.04 rubles) per kWh, however there might be a coefficient for mining. Then the typical tariff might be 2.90 soms (2.76 rubles) ”, He stated.

Even if electrical energy payments don't come for a full month, miners are required to report for this specific interval - that is fraught with discrepancies between receipts and fee, MP Dastan Bekeshev warned.

“If I had been the top of the tax, I'd have made notaries and the identical distribution networks as tax brokers. Allow them to conclude contracts themselves, take 1%, and 14% switch to the funds. It’s simpler for them - they know the place the miner sits. You'll not discover the place he sits, solely by the consumption of electrical energy, and Severelectro and different vitality firms have the info on them, ” He identified.

If the taxes on mining are tied to the vitality sector, then one other loophole for corruption will seem, MP Aisuluu Mamashova agrees.

“In the present day, every little thing that's prescribed within the legislation is a crime and we left all enterprise miners with nothing. We want to discover out the place the confiscated mining gear went and who it really works for now, as a result of it really works anyway. ” - stated Mamashova.

In accordance to her, many giant businessmen have transformed their factories beneath information facilities for mining.

“Utilizing the launched limits of electrical energy, (they) are already mining, and there are not any taxes for them. It’s mandatory to revise taxation for them, however energy engineers shouldn’t be given such a chance, as a result of they will wrap it in a corruption scheme, ” - stated the deputy.

The draft legislation “On Amending the Tax Code of the Kyrgyz Republic” was accepted by a decree of the Authorities of Kyrgyzstan on April 15, 2020.

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Recall that on the finish of 2019, due to the shortage of a regulatory framework for regulating mining and excessive vitality consumption, greater than 40 cryptocurrency mining firms stopped operations in Kyrgyzstan.

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