Revised law on Personal Income tax will come into effect on January 1st, 2018. Among the four newly increased taxes as agreed upon negotiations with the IMF, the revised Personal Income Tax is the most increased and controversial one.
The new graduated personal income tax will be 15, 20, 25 percents, increased from 10 percent on earnings above 1.5 million MNT. Business owners and miners alike have been opposed to this decision and protesting. The Trade Union of Energy, Geology and Mining Workers and miners announced a press conference today and informed about their address to the Cabinet.
It's also worth noting that in many cases, the mining workers are the sole bread-winner of the household.
Trade Union delegations claim that miners work in relatively hard conditions and suffer more from occupational diseases. Research results also show that miners are short-lived.
Moreover, 90 percent of all mining workers have debts, including mortgage loans and others. According to National Statistics Office, the average salary of mining workers is 2.3 million MNT. However, this amount includes all increases in pay such as night shift, harsh condition, field supplement, etc. It's also worth noting that in many cases, the mining workers are the sole bread-winner of the household.
The delegates noted that increasing tax is not the only option to increase state budget revenue, but there're alternate ways such as issuing Government bond, loans and grants, and printing money, etc.
The Energy and Mining Trade Union, together with Trade Unions of Oyutolgoi and Erdenes Tavan Tolgoi demand the new revision of graduated Personal Income Tax be cancelled during the press conference.
G.Bayarmaa, Head of Oyutolgoi Trade Union:
Miners work in the mining sites for more than eight months of the year, away from their homes and families. Therefore, in many cases, they are the sole breadwinners of the household. In international practices, the graduated income tax is differentiated as personal and household income.
Moreover, according to the Labour law, mining workers' retirement age is the same as others, irrespective of harsh working conditions.
Therefore, we see this new revision of tax law as robbery. The Government shall also openly inform about the plans related to the tax increases, how the additional income will be spent and which projects will be financed, etc.
Revised law on Personal Income tax will come into effect on January 1st, 2018. Among the four newly increased taxes as agreed upon negotiations with the IMF, the revised Personal Income Tax is the most increased and controversial one.
The new graduated personal income tax will be 15, 20, 25 percents, increased from 10 percent on earnings above 1.5 million MNT. Business owners and miners alike have been opposed to this decision and protesting. The Trade Union of Energy, Geology and Mining Workers and miners announced a press conference today and informed about their address to the Cabinet.
It's also worth noting that in many cases, the mining workers are the sole bread-winner of the household.
Trade Union delegations claim that miners work in relatively hard conditions and suffer more from occupational diseases. Research results also show that miners are short-lived.
Moreover, 90 percent of all mining workers have debts, including mortgage loans and others. According to National Statistics Office, the average salary of mining workers is 2.3 million MNT. However, this amount includes all increases in pay such as night shift, harsh condition, field supplement, etc. It's also worth noting that in many cases, the mining workers are the sole bread-winner of the household.
The delegates noted that increasing tax is not the only option to increase state budget revenue, but there're alternate ways such as issuing Government bond, loans and grants, and printing money, etc.
The Energy and Mining Trade Union, together with Trade Unions of Oyutolgoi and Erdenes Tavan Tolgoi demand the new revision of graduated Personal Income Tax be cancelled during the press conference.
G.Bayarmaa, Head of Oyutolgoi Trade Union:
Miners work in the mining sites for more than eight months of the year, away from their homes and families. Therefore, in many cases, they are the sole breadwinners of the household. In international practices, the graduated income tax is differentiated as personal and household income.
Moreover, according to the Labour law, mining workers' retirement age is the same as others, irrespective of harsh working conditions.
Therefore, we see this new revision of tax law as robbery. The Government shall also openly inform about the plans related to the tax increases, how the additional income will be spent and which projects will be financed, etc.
