"Mongolian tax rate is low compared to other developing countries"

B.Chimeg GoGo.mn

2017-03-14 14:19 GMT+8

On 12 March, Mongolian Business Council held its regular monthly meeting among its members.

At the beginning of the meeting, new members of the council were introduced. Following John Langtry, Australian Ambassador to Mongolia briefly introduced Women`s Leadership Program (WLP), which is a sub component of the Australia Awards Mongolia and is funded by the Department of Foreign Affairs and Trade of Australia. WLP is designed for male and female alumni of the Australia Awards Mongolia who have completed Masters degree programs in Australia and are currently working as mid career professionals in public, private and civil society organizations. 

Mongolia has reached Staff-Level Agreement with International Monetary Fund (IMF) on Three-Year Extended Fund Facility. Meeting participants discussed the effects of IMF`s program on economy. Economist D.Jargalsaikhan moderated the discussion and James Anderson, World Bank's Country Manager for Mongolia, Neil Saker, the IMF`s Resident Representative in Mongolia, B.Lkhagvasuren, vice president of Bank of Mongolia answered questions of participants. 

B.Lkhagvasuren, vice president of Bank of Mongolia stated that previous authorities spent US$ 8 billion in vain which caused current budget deficit. 

Economist D.Jargalsaikhan noted that now the Government officials will hear our voice. They become more obedient during economic difficulties. Thus we should constantly express our voice and demands.

Participants questioned that in scope of IMF`s Extended Fund Facility Program, Mongolia will increase six types of tax rates and social insurance contributions. Will it shrink the economy and cause bankruptcy for private sector?

In response, Neil Saker, the IMF`s Resident Representative in Mongolia: "Mongolian tax rate is low compared to other developing countries. 10 percent of personal income tax rate is at the same level as countries in the Middle East".

Photo by: D.Javkhlantugs

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