Ulaanbaatar
Tax debt to be fully paid off by Southgobi Sands LLC
PoliticsUlaanbaatar /MONTSAME/ The cabinet discussed and accepted Monday a proposal by the Ministry of Finance regarding the repayment of the tax debt by the “Southgobi Sands” LLC in accordance with a court decision.
Under the decision, the “South Gobi Sands” shall pay off tax debt of MNT 35.3 billion to the state budget of Mongolia. The Ministry of Finance has proposed to collect the money of MNT 15 billion out of total payment in 2016 and 2017 in two stages. The remaining part of the sum of MNT 20.3 billion will be paid off in a form of carrying out exploitation at the "Tavan Tolgoi" coal deposit at Southgobi Sands' own costs and manpower with a lower expense than the current market prices.
In this regard, the cabinet decided to entrust the "Erdenes Tavan Tolgoi" company to endorse an agreement on the proposal’s realization.
The “Southgobi Sands” LLC will cover expenses of transportation, employees' salaries, social insurance, accommodation, foods, electricity, repair of techniques and others. No extra money will be allotted from the “Tavan Tolgoi” company for the mining in Tavan Tolgoi deposit.
It is believed that the decision will make Mongolia possible to deal with the tax debt of the Southgobi Sands without bearing any losses and without suspending the company’s activities.
