Ulaanbaatar
Royalty rules renewed
Politics
Ulaanbaatar/MONTSAME/. At its regular meeting on September 4, the Cabinet renewed the rules on fixing, imposing, reporting and paying royalty.
In compliance with applied laws and relevant rules, royalties are paid by license holders only. However, entities who intermediate, transport and concentrate mineral resources and those who do not hold licenses but sell minerals do not pay royalties according to the existing rules.
Therefore, the
Cabinet renewed rules, namely ‘Fixing, imposing, reporting and paying royalties’
and ‘Calculating royalties on the sales of coal, iron ore and iron ore concentrate sold at
external markets’ and resolved to impose equilibrated royalty.
Accordingly, legal
units who sold mineral resources, loaded for selling and used, and those who
sold gold to the Bank of Mongolia and its authorized commercial banks must pay
royalties. By doing so, there will be conditions to define the base of income
tax truly and thoroughly, which will lead to increase tax revenue.
Since the mining sector makes about 25 percent of revenue accumulated to the state and local budgets, the renewed rules are considered essential to broaden the base of budget revenue.
