The Norwegian government intends to reverse its previous position that crypto data centers would pay lower taxes.
The Norwegian government is considering ending the practice of allowing crypto data centers to pay reduced rates on electricity. According to reports, the reduced rates on Bitcoin miners need to be eliminated as the demand for electricity is on the rise across the nation.
As per a government statement issued this week, data center power will consequently be subjected to the standard electricity tax rate that also applies to other service providers. The following rationale for the move was presented by the Norwegian minister of finance, Trygve Slagsvold Vedum:
“We are in a completely different situation in the power market now than when the reduced rate for data centers was introduced in 2016…. In many places, the power supply is now under pressure, which causes prices to rise. At the same time, we are seeing an increase in cryptocurrency mining in Norway. We need this power for the community.”
The proposal comes in the heels of Vedum’s presentation of Norway’s national budget for the year of 2023. According to him, with Bitcoin miners paying the standard electricity tax rates, the nation could have more than $14M in revenue.