Road tax increased five times starting 2020Society
Ulaanbaatar /MONTSAME/. On December 2, Citizen’s Representative Khural of Ulaanbaatar city convened and made a decision to increase the annual road tax in Ulaanbaatar city by five times.
As the new regulation enters into force on January 1, 2020, owners of vehicles in Ulaanbaatar city are required to pay road tax from MNT 100 thousand to MNT 250 thousand depending on the type of vehicle each year, which approximately equals to MNT 8300 month.
The road tax payment collected a total of about MNT 11.4 billion in 2016, MNT 11 billion in 2017, MNT 12,5 billion in 2018 and MNT 12,7 billion in 2019 to the Ulaanbaatar city budget. According to the ulaanbaatar.mn, around 30-40 percent of the total budget of the capital city is spent on repairs and maintenance of auto roads. However, this is not sufficient to cover all the roads in Ulaanbaatar, with more than 500 thousand daily average vehicle flow.
In addition to the cost for road maintenance, the collected fees will be expended for other pressing transportation issues of Ulaanbaatar city, such as for increasing number of school buses, road widening and so on.