Corruption rate remains high among tax authorities

ZGM DAILY

2019-03-16 13:00 GMT+8

FAIR COMPETITION AND CORRUPTION DISCUSSION TAKES PLACE

The Asia Foundation, Independent Agency Against Corruption (IAAC), and Authority for Fair Competition and Consumer Protection (AFCCP) hosted a Fair Competition and Corruption discussion at the Blue Sky hotel yesterday. The discussion was based on a study of corruption in the business environment. According to the survey that is being conducted for the seventh year, corruption in the business environment is likely to decline in Mongolia. However, due to professional control and licensing, corruption in customs and taxation institutions is not decreasing.

Business people perceived the current tax rates as high

A spokesperson of the IAAC addressed, “The survey attempts to bring to light the main issue for entrepreneurs and review recorded corruption cases. The IAAC needs to cooperate with private entities, public organizations, and civil societies to abolish corruption. Anti-corruption activities are perceived as a concern of particular organizations and specialists. However, everyone's involvement will be crucial in realizing actual results. The survey aims to see where the risk is so that we can take preventive measures.”

According to the study, corruption cases were noted in key positions that grant special permits and licenses. In terms of organizations, corruption is highly associated with professional inspection and tax authorities.

According to the IAAC, the majority of business people perceived the current tax rates as high. Officials at the discussion highlighted that high taxes cause taxpayers to avoid taxes in order to increase  their profits, which then leads public servants to become dependent on corruption. The problem is that bribery still exists because civil servants are abusing their power to pay taxes.

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