Daily News spoke with Vice Minister of Finance Kh. Bulgantuya about recent tax reforms. A working group from the International Monetary Fund will visit Mongolia on January 25 to talk about the tax reforms again.
She said that when the government approached the IMF, that several foreign debt repayments needed to be paid and the IMF proposed raising taxes and the officials said that taxes should be increased for people with higher incomes. The government will ask the IMF to reconsider tax increases when they meet on the 25th.
Kh. Bulgantuya said that gasoline prices are likely to increase, noting that fuel prices have been high in the international market in recent years, adding that currency exchange rates affect domestic prices as well. Mining and heavy industry is the nation's main consumer of gasoline and diesel fuel, and lowering the excise tax for gasoline is a means of supporting the industry. She said, “Because Mongolia is fully dependent on gasoline imports, we can’t manage prices, but we are researching ways to replace imports and produce local products.
Parliament granted Cabinet the right to increase or decrease the excise tax for gasoline. The cabinet makes the decision to raise or lower the tax based on proposals from the pricing council. In light of the IMF’s extended fund facility program requirements, it was decided that excise tax for gasoline below 90 octanes would be 260,000 MNT per ton and diesel fuel tax would be 280,000 MNT per ton. If the excise tax is lowered, state revenue will be lost.”
She also mentioned that Mongolia has been instructed by the IMF to make reforms to its legislative environment. The vice minister said that macro-economic indicators have seen positive changes. State revenue grew by 500 billion MNT, but it is still significantly lower than the nation's foreign debt. The IMF told the government to pay attention to healthcare and education, as well as generating savings and addressing bond issues.
Daily News spoke with Vice Minister of Finance Kh. Bulgantuya about recent tax reforms. A working group from the International Monetary Fund will visit Mongolia on January 25 to talk about the tax reforms again.
She said that when the government approached the IMF, that several foreign debt repayments needed to be paid and the IMF proposed raising taxes and the officials said that taxes should be increased for people with higher incomes. The government will ask the IMF to reconsider tax increases when they meet on the 25th.
Kh. Bulgantuya said that gasoline prices are likely to increase, noting that fuel prices have been high in the international market in recent years, adding that currency exchange rates affect domestic prices as well. Mining and heavy industry is the nation's main consumer of gasoline and diesel fuel, and lowering the excise tax for gasoline is a means of supporting the industry. She said, “Because Mongolia is fully dependent on gasoline imports, we can’t manage prices, but we are researching ways to replace imports and produce local products.
Parliament granted Cabinet the right to increase or decrease the excise tax for gasoline. The cabinet makes the decision to raise or lower the tax based on proposals from the pricing council. In light of the IMF’s extended fund facility program requirements, it was decided that excise tax for gasoline below 90 octanes would be 260,000 MNT per ton and diesel fuel tax would be 280,000 MNT per ton. If the excise tax is lowered, state revenue will be lost.”
She also mentioned that Mongolia has been instructed by the IMF to make reforms to its legislative environment. The vice minister said that macro-economic indicators have seen positive changes. State revenue grew by 500 billion MNT, but it is still significantly lower than the nation's foreign debt. The IMF told the government to pay attention to healthcare and education, as well as generating savings and addressing bond issues.