Minister of Finance Ch. Khurelbaatar spoke about the seven taxes that will be increased in 2018 as part of the International Monetary Fund’s extended fund facility program.
He said that in early 2017, the nation was facing an economic crisis, a situation so dire that donations were collected from the public to repay the state's 500 million USD bond debt. Mongolia was ultimately included in the IMF’s program and Parliament approved Cabinet's proposal to increase seven taxes, including an increase in personal income tax of six to seven percent for all working people.
He also spoke about the proposed tax on livestock, “Most herders are older people and they look after their livestock almost 24/7. It is not necessary to issue a tax on their livestock.”
The minister noted that economic growth will be around 3.3 percent for 2017, which Parliament expected in determining 2017 budget amendments. The price of copper and coal were stable at the end of the year, and the minister noted that the volume of coal export has been increasing since his most recent visit to China.
He highlighted that economic growth is seeing many positive changes, such as foreign currency reserves nearly tripling over 2016, a strengthening tugrug exchange rate, increased foreign investment, and a stronger credit rating.
Lastly, Minister Ch. Khurelbaatar said that a 260 million USD repayment for the Chinggis and Dim Sum bonds will be made, with 340 million USD already paid for the 500 million USD Chinggis Bond debt and 20 million USD paid for the 160 million USD Dim Sum Bond debt.
Minister of Finance Ch. Khurelbaatar spoke about the seven taxes that will be increased in 2018 as part of the International Monetary Fund’s extended fund facility program.
He said that in early 2017, the nation was facing an economic crisis, a situation so dire that donations were collected from the public to repay the state's 500 million USD bond debt. Mongolia was ultimately included in the IMF’s program and Parliament approved Cabinet's proposal to increase seven taxes, including an increase in personal income tax of six to seven percent for all working people.
He also spoke about the proposed tax on livestock, “Most herders are older people and they look after their livestock almost 24/7. It is not necessary to issue a tax on their livestock.”
The minister noted that economic growth will be around 3.3 percent for 2017, which Parliament expected in determining 2017 budget amendments. The price of copper and coal were stable at the end of the year, and the minister noted that the volume of coal export has been increasing since his most recent visit to China.
He highlighted that economic growth is seeing many positive changes, such as foreign currency reserves nearly tripling over 2016, a strengthening tugrug exchange rate, increased foreign investment, and a stronger credit rating.
Lastly, Minister Ch. Khurelbaatar said that a 260 million USD repayment for the Chinggis and Dim Sum bonds will be made, with 340 million USD already paid for the 500 million USD Chinggis Bond debt and 20 million USD paid for the 160 million USD Dim Sum Bond debt.