Norway to Cancel the Tax Breaks for BTC Mining
The Norwegian government has decided to abolish the tax breaks on electricity for mining BTC. According to the authorities, this crypto business harms the environment.
According to Norwegian MP Lars Haltbrekken, bitcoin represents the dirtiest form of cryptographic output. Mining BTC requires a lot of energy and produces a lot of CO2 emissions into the atmosphere, which damages the entire planet.
Therefore, the authorities decided to cancel the tax breaks on the purchase of electricity for mining. The changes will take effect from the beginning of 2019.
Now, miners in Norway pay about 0.0005 USD tax per kilowatt of electricity per hour. Starting from next year, the rate will rise to two cents.
The Norway crypto community reacted negatively to the authorities’ initiative. According to society, the country receives most of its electricity from renewable energy sources. Cancellation of benefits can force a crypto business to flee the country and go to states where energy production creates a huge carbon footprint. And it will increase the pollution of the planet at the end of the day.