Package of draft laws on tax discussed

Economy
unurzul@montsame.mn
2019-02-20 14:00:47

Ulaanbaatar/MONTSAME/ On February 18, the State House organized a discussion to present the package of draft laws on tax. Until today, the Ministry of Finance has carried out a discussion on the same topic 39 times since February 2018, which involved 4,790 people.

The package of draft laws aims to support taxpayers, to encourage them to pay taxes in due times and to provide the trustful payers with premiums. Moreover, the package includes clauses on fighting with tax avoidance and unfair payers, said Ch.Khurelbaatar, Minister of Finance, in his report during the discussion.

B.Battumur MP pointed out the package will be submitted soon to the parliamentary session for a discussion of a plenary meeting. He said, “A working group has been set up by a Speaker’s ordinance to prepare the package of the draft laws for a meeting of the relevant Standing committee and a plenary meeting of the parliamentary session. We are scrutinizing proposals on the package laws given from individuals, governmental bodies, NGOs and enterprises.”

Concerning some noticeable matters on the package of draft laws, acting head of the General Department of Taxation B.Zayabal said: “By the draft, a general system of taxation management is projected to be introduced in order to convert the existing tax report card system into online. It will make the individuals’ income tax reporting simpler and easier. It also will allow registering foreign individuals and enterprises in the income taxation system. Furthermore, tax return of the VAT will be provided quarterly as well.”


Ch.Khurelbaatar, Minister of Finance, pointed out the package of the draft laws has a clause that permits entities with annual income below MNT 50 million to pay one-percent tax and give a simplified report once a year. He said that the tax laws have been altered after the Finance Ministry had analyzed all views and proposals.



B.Lkhagvajav, Chairman of the Board and President of MNCCI, said: “New wordings of the laws on VAT, on audit and on accounting came into force from January 1st 2016. These new wordings were supposed to correlate with the package of tax laws, but they are still in discussion with no approval yet. A forecast shows the Mongolian economic growth will double in 2021 from the current size. Therefore, the above laws will become vital to make the tax environment better in order to progress the current economy. The VAT lottery system contributed to maximizing the governmental budget, exceeding by MNT 2.2 trillion. Likewise, the simplified tax reporting of small and medium-sized entities will definitely give positive impact on the national economy. By the law on individuals’ income tax, the tax discount should be simplified like the VAT tax return. If we implement it successfully, Mongolia will become a country with the easiest tax system in central Asia.”

An economist J.Delgersaikhan said: “Articles and clauses in the package of the draft laws are fully harmonized with the present economic environment. The tax payment and return matters are clearly reflected in the laws. It simply means the amended laws will provide fair taxpayers with many advantages.”


                                                                                                                                                         source: mongolchamber.mn