Government of Uzbekistan Triple Electricity Taxes for Crypto Miners

The government of the Republic of Uzbekistan made an announcement on September 27, 2019 to triple electricity taxes for crypto miners. The measure was approved by the Cabinet of Ministers.

The decision was made to triple the taxes on electricity for anyone who was involved in crypto assets, which includes mining. Many people have made suggestions since the announcement. One was to defer payments to prevent suffering for the investor or entrepreneur. Another suggestion was to gain support for blockchain technology from the government because of the crucial role miners play. Some experts believe it will kill the development of the blockchain industry in Uzbekistan.

In September 2018, President Miriziyoyev ordered the commencement of Digital Trust, a fund focused on blockchain. The fund would look at ways to implement crypto on government projects. At that time, tax-free crypto trading and mining were allowed. Because of this and other decisions, the tripled tax has been a surprise.