Norway Prepares to Reverse Electricity Tax Cut for Cryptocurrency Miners – Mining Bitcoin News

Bitcoin.com

The Norwegian government is reviewing a proposal to abolish the policy of preferential tax treatment for data centers mining cryptocurrency with cheaper electricity. The executive power in Oslo says conditions have changed and the country needs the energy currently used by miners.

Mining Firms Likely to Lose Tax Incentive as Norway Seeks to Save Power, Collect More Tax

Norwegian authorities are on their way to scrap a tax cut that has been benefitting crypto mining businesses for years. They are proposing to get rid of the reduced electricity tax rate for data centers in the Nordic country, many of which are minting digital currencies.

How To Get Free Crypto  

Power for data centers will thus be subject to the general electricity tax rate, the same that applies for other service industries, the government said in an announcement published this week. Finance Minister Trygve Slagsvold Vedum explained the reasoning behind the move:

We are in a completely different situation in the power market now compared to when the reduced rate for data centers was introduced in 2016.

In many areas power supply is now under pressure, which causes prices to rise, Vedum elaborated. At the same time, the crypto extraction sector has expanded in Norway. “We need this power for the community. The government will therefore discontinue the scheme,” the member of the cabinet in Oslo was quoted as stating.

Investigations have shown that it is practically impossible to distinguish between electrical energy used for the minting of digital coins and that consumed by data centers for other purposes, the government also noted.

If crypto mining is to be subject to the regular electricity tax rate, the tax cut for data centers must be phased out entirely, officials believe. They estimate that in this case budget receipts will increase by 150 million Norwegian kroner (over $14 million) now and another 110 million kroner (more than $10 million) next year.

Coinbase Banner  

The latest development comes after a failed attempt to ban the energy-intensive mining of proof-of-work cryptocurrencies in May of this year. A push in that direction by the far-left Red Party in parliament was rejected by the majority of Norwegian lawmakers. At the time, they also turned down a proposed electricity tax hike for crypto miners.

Tags in this story
ban, benefit, consumption, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Data Centers, Electricity, Energy, Miners, mining, mining farms, Norway, norwegian, power, Tax, tax benefit, tax cut, tax policy, Taxation

Do you think Norway will lose its attractiveness as a crypto mining destination if it scraps the tax cut for miners? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

FreeBitcoin Banner  

Read disclaimer

Go to Source
Author: Lubomir Tassev


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.