Starting from 11:40 AM on October 17, citizens started to vote online on a proposal on the VAT refund should be 5 percent, and 100,151 people have voted.
The refund of value added tax belongs to the concept of tax incentive in other countries. It is considered as a measure aimed at improving the country's tax system, certain types of taxes, economic effectiveness, and increasing foreign and domestic investments.
As a result of increasing the rate of refund of value added tax, the price pressure and poverty of the citizens due to the increase in the price of consumer goods will be reduced.
Also, It is possible to increase the number of people withholding VAT and reduce the hidden economy. Therefore, a proposal was made to amend the Law on Value Added Tax and set the value added tax refund to be at least 5%.
Minimum number of signatures to collect: 100,000 /achieved/
Initiator: G.Zandanshatar, Speaker of the Parliament
The VAT of Mongolia increased by MNT 563 billion (20%) as of the first nine months of this year.
While the Minister of Finance is against this proposal. B.Javkhlan, Minister of Finance, said:
- It is not possible to increase the VAT refund rate. I arrived yesterday after attending the conference of the World Bank and International Monetary Fund. VAT refund is an issue of the tax system. It will not be decided all of a sudden. First, we need to study how it will affect the budget, the tax base, and the participants in economic relations which are citizens and enterprises. It is necessary to study from all sides.
Is it right to decide the tax through a public vote? Also the criminal cases. It's obvious what a taxpayer would answer when asked about this. Everyone except me will vote for 5 percent. We are ready to receive proposals from professional organizations and professional ministries. The VAT system of our country has a history of 25 years.
Increasing the rate of VAT Refunds to 5% is an ineffective policy that favors a small number of citizens with high income rather than the middle class. An additional MNT 600 billion will be needed in the budget, but 50% of this will be received by citizens with high income which is only 10%.
Starting from 11:40 AM on October 17, citizens started to vote online on a proposal on the VAT refund should be 5 percent, and 100,151 people have voted.
The refund of value added tax belongs to the concept of tax incentive in other countries. It is considered as a measure aimed at improving the country's tax system, certain types of taxes, economic effectiveness, and increasing foreign and domestic investments.
As a result of increasing the rate of refund of value added tax, the price pressure and poverty of the citizens due to the increase in the price of consumer goods will be reduced.
Also, It is possible to increase the number of people withholding VAT and reduce the hidden economy. Therefore, a proposal was made to amend the Law on Value Added Tax and set the value added tax refund to be at least 5%.
Minimum number of signatures to collect: 100,000 /achieved/
Initiator: G.Zandanshatar, Speaker of the Parliament
The VAT of Mongolia increased by MNT 563 billion (20%) as of the first nine months of this year.
While the Minister of Finance is against this proposal. B.Javkhlan, Minister of Finance, said:
- It is not possible to increase the VAT refund rate. I arrived yesterday after attending the conference of the World Bank and International Monetary Fund. VAT refund is an issue of the tax system. It will not be decided all of a sudden. First, we need to study how it will affect the budget, the tax base, and the participants in economic relations which are citizens and enterprises. It is necessary to study from all sides.
Is it right to decide the tax through a public vote? Also the criminal cases. It's obvious what a taxpayer would answer when asked about this. Everyone except me will vote for 5 percent. We are ready to receive proposals from professional organizations and professional ministries. The VAT system of our country has a history of 25 years.
Increasing the rate of VAT Refunds to 5% is an ineffective policy that favors a small number of citizens with high income rather than the middle class. An additional MNT 600 billion will be needed in the budget, but 50% of this will be received by citizens with high income which is only 10%.