Crypto Miners in Republic of Uzbekistan Slammed with 3x Taxes on Electricity
On Friday, September 27, 2019, the government of the Republic of Uzbekistan has decided to triple taxes on electricity for crypto miners.
Approved by the Cabinet of Ministers and embedded in, “On Accelerated Measures to Improve Energy Efficiency in Economic and Social Sectors, Implementation Energy Saving Technologies and the Development of Renewable Energy Sources,” the decision to triple taxes applies to anyone involving themselves in activities related to crypto assets including mining, which has been described as:
“Activities to maintain and create new blocks with the ability to receive remuneration in the form of new units and commission fees in various cryptocurrencies.”
Many have since made general suggestions. For instance, Tahir Sultanov commented that increasing electricity for miners shouldn’t be the only task done, but also ensuring that they can defer payments so that “the investor and entrepreneur do not suffer.” This was mentioned in reference to the fact that many from Uzbekistan are involving themselves in this field.
Another individual, Husan Turdiev, proposed that the government support blockchain technology, especially miners because they play a crucial role in nodes. He seems to think that the tripled taxes for crypto miners is “thoughtless” adding that such move,
“Will not only stop the development of the blockchain industry in the country, it can completely kill it – because the country will lose industrial and private mining capacities that support the network.”
Cointelegraph reported on this matter as well, primarily looking back at previous decisions made regarding the blockchain world.
In particular, it was noted that last September, President Miriziyoyev ordered to commence a blockchain-focused fund called, “Digital Trust”, which would look at ways to implement the technology on government projects. During this very same moment, the government allowed for “tax-free” crypto trading and mining. Hence the decision to triple taxes for said individuals does in fact come of surprise.