Ulaanbaatar
BoM Vice President meets authorities of Mongolian Gold Producers' Association
Economy
Ulaanbaatar /MONTSAME/ Vice President of the Bank of Mongolia (BoM) B.Lkhagvasuren held meeting with representatives of the Mongolian Gold Producers' Association (MGPA) within the framework of the ‘National Gold to the Fund of Treasures’ campaign.
During the meeting the gold producers pointed out some difficulties they face. Tax rate for an economic entity incorporated in Mongolia is ten per cent for the first MNT3 million and MNT300 million, plus 25 percent for all income exceeding MNT3 billion (the Article No.17.1 of the Law on Corporate Income Tax). The tax rate burdens gold mining companies and revoking licenses in some instances slows down gold mining process, too many unnecessary inspections are carried out from relevant authorities, complained the gold miners, noting the necessity of citizens and civil servants' correct understanding on gold mining.
During the meeting the gold producers pointed out some difficulties they face. Tax rate for an economic entity incorporated in Mongolia is ten per cent for the first MNT3 million and MNT300 million, plus 25 percent for all income exceeding MNT3 billion (the Article No.17.1 of the Law on Corporate Income Tax). The tax rate burdens gold mining companies and revoking licenses in some instances slows down gold mining process, too many unnecessary inspections are carried out from relevant authorities, complained the gold miners, noting the necessity of citizens and civil servants' correct understanding on gold mining.
Vice President of BoM B.Lkhagvasuren informed on the planned measures to be taken by the Mongolbank. The BoM has developed a bill and is cooperating with relevant government agencies to extend the term of the Article 47.3.3 of the Minerals Law, ‘Royalty for gold sold to the BoM and authorized banks, as stipulated in article 47.3.2 of this Law, is equal to 2.5 percent, additional fees set forth in Article 47.5 of this Law is equal to 0 percent’ until January 1, 2024.
Mr. B.Lkhagvasuren also pledged to meet with relevant government organizations on the issues of overlapping inspections conducted by aimag and soum authorities, special inspection offices, environmental inspectors and police officers, reducing the red tape and supporting responsible mining. Moreover, he emphasized the preparation work for establishing precious metals assay laboratory in rural areas and works for supporting mining and export of ecological gold.
Mr. B.Lkhagvasuren also pledged to meet with relevant government organizations on the issues of overlapping inspections conducted by aimag and soum authorities, special inspection offices, environmental inspectors and police officers, reducing the red tape and supporting responsible mining. Moreover, he emphasized the preparation work for establishing precious metals assay laboratory in rural areas and works for supporting mining and export of ecological gold.
Within the framework of the ‘National Gold to the Fund of Treasures’ campaign, the parties agreed to organize a joint meeting to improve awareness of gold mining to relevant officials of public organizations, local administrations and citizens in October this year.
B.Misheel
