Package of draft laws on tax discussed
EconomyUlaanbaatar/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