The State Great Khural of Mongolia to finalize and approve bill on 2017 budget amendments. To implement the IMF program, the Mongolian government has agreed to make three arrangements, including the budget adjustment to increase some tax rates. In regards, Business Council of Mongolia issued the following statement, advocating for a fair, stable, and transparent business environment.
First and foremost, we support the need to approve and implement the Extended Fund Facility (EFF) program with the International Monetary Fund (IMF). International markets and credit agencies have already priced in the likelihood of implementation of the IMF program, thus stabilizing Mongolia’s economic and risk outlook. Not implementing the IMF program will be seen as a very negative indication for political risk and risk for investing in Mongolia.
At the same time, we have concerns regarding the proposed increases in taxes:
Additionally, we would like to point out that there are other ways to increase state budget revenue or to decrease state budget expenditures. Below are a few such examples:
Of note, we will not support any campaigns that encourage citizens and businesses to refuse to pay taxes. We encourage our members and everyone from the business community to follow the law, and it is the confirmed position of our organization and our members that the proper method for airing their concerns is through continued dialogue with members of Parliament and the Government of Mongolia.
Finally, we would like to invite representatives of the Parliament and Government of Mongolia to work with us and the private sector to research, to develop, and to choose measures that will boost the economy, thus creating win-win-win for the private sector, citizens of Mongolia, as well as the Government of Mongolia.
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