|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
(HBO) – A delegation from the Mongolian Embassy in Vietnam and the Vietnam-Mongolia Friendship Parliamentarians’ Group led by Ambassador Dash Bilegdorj paid a working visit to Hoa Binh province on December 15. The delegation had a working session with Tran Dang Ninh, Permanent Vice Secretary of the provincial Party Committee and Chairman of the provincial People’s Council; and Bui Van Khanh, Vice Chairman of the provincial People’s Committee.
As part of the trip, the delegation visited two enterprises at Luong Son Industrial Park (IP), namely Esquel Garment Manufacturing Vietnam-Hoa Binh Limited Company and HNT Electronics Company which produces spare parts for mobile phone producer Samsung. Since its establishment 10 years ago, the Luong Son IP has attracted 29 projects, including 14 foreign-invested ones. The 230ha IP has created jobs for workers from Luong Son town, Hoa Binh city and Hanoi’s Chuong My district.
At the working session, Ninh expressed his delight at welcoming the delegation from the Mongolian Embassy in Vietnam and the Vietnam-Mongolia Friendship Parliamentarians’ Group. He informed them of the province’s features as well as its potential and advantages in geographical position, natural conditions and socio-economic development in recent years.
In the investment promotion aspect, Hoa Binh now has eight IPs. Luong Son district alone has three IPs. Hoa Binh has been part of the Hoa Binh-Hanoi development economic region with the focus placed on technology.
Ninh showed his hope that the two sides will work together to foster the bilateral relation and create favourable conditions for businesses of Mongolia and Vietnam, including those from Hoa Binh to meet and strengthen cooperation for mutual development.
Dash Bilegdorj affirmed that Mongolia and Vietnam have maintained a good relationship. He expressed his wish that more economic deals will be signed between Mongolia and Hoa Binh in the time ahead.
On the same day, the delegation offered incense at President Ho Chi Minh statue and visited an orange planting model at Thuy Nga orchard in Cao Phong town (Cao Phong district) and Hoa Binh Hydropower Plant.
Increases in personal income taxes reveal underlying systematic issues with fair taxation in Mongolia www.theubpost.mn
Beginning on January 1, 2018 Mongolia will introduce a new tax bracket system for the personal income tax. The new tax bracket system intends to replace an old system which imposed 10 percent to all citizens regardless of their income. Most would agree that tax reform in Mongolia has been long overdue but Cabinet’s proposed amendment has been met with fierce opposition. Many unions, including the Oyu Tolgoi mine workers’ union and other businesses have publically opposed the decision and have staged protests.
The Ministry of Finance has justified the move, clarifying that the increases in the personal income tax would only affect eight percent of the population. Of Mongolia’s 900,000 registered taxpayers that pay a personal income tax, 92 percent will be unaffected by the increases and will pay the 10 percent they are accustomed to. Tax breaks for the lowest earners will increase also as part of the new tax bracket system. These are all within the terms that were agreed upon with the International Monetary Fund when Mongolia requested to be enrolled into an extended fund facility.
Delving deeper beyond the surface into the tax increases shows us that the measure is not baseless and is in line with IMF’s core values of mitigating the impact of some reform measures on the most vulnerable in society. Tax breaks for the lowest earners will be increased on a step-by-step basis. In 2018, the lowest tax bracket will enjoy a 120,000 MNT tax break. The tax discount will be gradually increased each year, ultimately reaching 240,000 MNT in 2021.
Collecting taxes, especially the personal income tax, based on income brackets is not a new idea and is employed by countless countries around the world. Some might ask then if only eight percent of workers will be affected and if a similar system is employed around the world, why are people still opposed to the increase?
Logically, people who will be most affected by the tax increases will be the most opposed. It is quite rare for any government anywhere to increase taxes and for it to be unopposed.
The Mongolian Association of Woman Business Owners has publically criticized the decision as an impediment to the people’s opportunity for growth and prosperity in addition to being detached from reality.
For some, their opposition stems from the fact that their albeit high-income is the only source of income for a family. For miners, the long working hours and time spent away from the families justifies their relatively high-income salaries and they have been the most vocal opponents of the tax bracket system.
In 2017, revenue from the personal income tax is estimated to be 43 billion MNT. With the introduction of tax bracket system, revenue will jump to 88 billion MNT in 2018 and 84 billion MNT in 2019. Accordingly, the new tax bracket will only supplement an additional 40 billion MNT to the state budget, hardly enough to put a dent in the 737 billion MNT state budget deficit.
However, the issue is not only just that certain high-income individuals will pay higher taxes.
Increasingly, discussion around the issue has transformed into a debate about equal and fair taxation. In theory, a tax bracket system is a fair system of taxation but only if it is imposed fairly and evenly amongst the population. One large segment of Mongolia’s population has been consistently and systematically omitted and unofficially exempt from taxes and more specifically the personal income tax. Taxation of informal sectors has been a common issue for many developing countries and Mongolia is no exception.
There is a bigger systematic reason for the blatant tax exemption that herders enjoy. While the number of herders has been decreasing consistently as rural to urban migration increases, they still remain a major voter base. While the interests of herders might not be at the forefront in Ulaanbaatar, Mongolia still has 20 other provinces. In the majority of those provinces, livestock production is the main source of income and therefore voters tend to vote for politicians that promise to not impose taxes on herders.
The ruling Mongolian People’s Party won a 65 majority seat in Parliament mainly thanks to its platform that it would not create any additional taxes, it was obvious that appeasing to herders was a major reason for its landslide victory.
Herders, along with traders in the city’s markets account for a large unregulated untaxed sector in the economy. In theory, traders and herders alike should all have to pay taxes. Herders and their children all enjoy public services such as education, health insurance, and welfare that is funded by taxpayers without contributing their share.
Deliberately exempting herders from taxes for political gain has created a bad precedent and ultimately concentrated the majority of the tax burden on the 900,000 workers paying a personal income tax.
Admittedly, herding is a tough business in which the herder is solely responsible for any liabilities. It is a sector which can be devastated by weather or natural disease. However, since the transition into a market economy, Mongolia has seen development of whole economic sectors dependent on livestock products from herding as herders are not only subsisting on livestock but profiting.
While this may not be true for all herders, many wealthy herders benefit from not having to pay taxes. In many ways, Mongolia’s reluctance to impose taxes on herders can be likened to the United States’ reluctance to tax churches and religious organizations. A sense of traditional values and morals have become an impediment to fair taxation. In a world where herders are tugrug billionaires and churches are multi-billion dollar businesses, it is irrational to exempt a huge segment of the economy.
Many politicians have tried to skew the argument into something cultural, arguing that imposing taxes on herders would threaten the Mongolian way of living. However, as argued by economics professor G.Khashchuluun at the National University of Mongolia, at the very least, we need to tax herders that have thousands of livestock.
Another argument is that the Constitution states that pasture in Mongolia belongs to the state, classifying it as a natural resource as same as coal or petroleum. Therefore, mining companies and herders both use resources owned by the government for profit but only the mining companies pay taxes.
However, taxing herders is not the be-all and end-all solution to Mongolia’s taxation system. As a whole, the system in which taxes are determined and collected need to be more comprehensive....
(Reuters) - Tesla Inc will build a pickup truck soon after producing electric crossover vehicle Model Y, Chief Executive Elon Musk said on Tuesday.
"I promise that we will make a pickup truck right after Model Y. Have had the core design/engineering elements in my mind for almost 5 years. Am dying to build it," Musk wrote in a Twitter post. bit.ly/2l1A1JJ
The Model Y, to be built on the same platform as the Model 3 sedan, was tentatively scheduled to begin production in mid-2019, Reuters reported in June.
The electric vehicle maker first announced plans for a pickup truck last July, alongside a “master plan” to develop a commercial truck, a public transport bus and a compact sport utility vehicle.
Musk had said in April that the pickup truck would be unveiled within 18 to 24 months.
Busan City announced that a Mongolian consulate has opened in Busan for active exchanges between Busan and Mongolia.
It is located on the 10th floor of the Sambi Building, 627 Jungang-daero, Busanjin-gu and is open from Monday through Friday, 10 am to 4 pm.
The consulate issues Mongolian visas and promotes cooperation with Busan. It has jurisdiction over Busan, Ulsan, Daegu, Gyeongsangnam-do, Gyeongsangbuk-do, and Jeollanam-do.
Busan City anticipates increased cooperation with Mongolia in various areas, including logistics, medical care and tourism. Direct flights to Ulaanbaatar will begin this June, increasing the number of Mongolian visitors to Busan and vice versa.
The al-Kawthr network reported that Turkey, Azerbaijan, Kyrgyzstan and Mongolia will have joint military forces under the title of ‘the Joint Army of the Turkic World, the Eurasian Military Force.’
Turkey, Azerbaijan, Kyrgyzstan and Mongolia will have joint military forces.
The army will be set up under the title “The Joint Army of the Turkic World, the Eurasian Military Force,” according to the al-Kawthr network.
In 2013, the Turkic world developed a plan for a joint military force. Based on that, the Eurasian Military Force, the same as the United Nations Peace Force, will protect security in the region.
In the first stage, “military forces with the position of the Eurasian Security Forces” will be established with the participation of Turkey, Azerbaijan, Kyrgyzstan and Mongolia. The Turkish Gendarmerie Command will play an active role in this force.
Because Mongolia had called off a part of its military forces, which was intended to join the “military forces with the status of Eurasian security forces,” the plan was postponed for a while. But now again, the formation of the “”The Joint Army of the Turkic World” has been revived.
The force will begin its activities in 2018. The mission of this force is to maintain peace and security in the region, to exchange information, military and security experience between the united Turkic forces. The gendarmerie of each member state will allocate power based on the quota assigned to “military forces with the position of the Eurasian security forces”. The Turkish gendarmerie and security forces will train the forces of other countries. The security of the embassies will be preserved by the gendarmerie.
Ulaanbaatar, December 26: To decrease the dependency on China, Mongolia had approached India for funding it for establishing an oil refinery that could boost the nation’s gross domestic product by 10%. In response Mongolians got a smile on face as India has decided to give $1 billion as a loan to Mongolia.
The Mogolian government intends to use $700 million of the loan for an oil refinery and $264 million for oil pipelines, according to a statement on its website last week. Mongolian PM Erdenebat Jargaltulga has instructed relevant ministries to negotiate with the Export-Import Bank of India, according to the statement.
Mongolia is looking to India and other investment partners as its economy contracts and its debt burden grows. Last month, China backed off from talks with Ulaanbaatar over a loan package to help the economy after a dispute over the visit to Mongolia by the Dalai Lama.
The refinery will have a capacity to process 1.5 million metric tonnes of oil per year. It will produce 560,000 tonnes of gasoline, 670,000 tonnes of diesel fuel and 107,000 tonnes of liquefied gas annually. The refinery could boost Mongolia’s GDP by 10%, according to the statement.
The 20-year loan will have an interest rate of 1.75% and principle payments will be waived during the five years.
According to the provision number 8.10.11 of 'Mongolian Stock Exchange' JSC Charter of Incorporation and the provision number 33.1 of the Mongolian Stock Exchange Trading Rules and the CEO Order number A218 dated 25 December 2017, the lower price limit for block trade is set to be 15% from the previous day close, removing the upper price limit. The changes are made based on the suggestions from the market participants and are reflected in the revised 'Trading Rules' approved by the MSE Board of Directors on 13 December 2017 that is pending approval by the FRC....
China and Pakistan are looking to include Afghanistan in their $57 billion economic corridor, as part of Beijing's Belt and Road initiative, said Chinese Foreign Minister Wang Yi, as quoted by Reuters.
The economic corridor is expected to benefit the whole region and act as an impulse for further development, according to the minister. Under the broader Belt and Road project Beijing is planning to build a new “Silk Road” connecting China to Southeast and Central Asia by land and the Middle East and Europe by sea.
“So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend the China-Pakistan Economic Corridor to Afghanistan,” the agency quotes Wang as saying.
Relations between Afghanistan and Pakistan have been strained since Pakistan's independence in 1947 with China trying to promote talks between the parties. In recent years, the task has been even more complicated as Afghanistan accused its neighbor of supporting Taliban insurgents fighting the US-backed government in Kabul to restrict India's influence in the country. Pakistan has denied the allegations.
It is important for Afghanistan to join the inter-connectivity initiatives as it is a vital necessity to improve its people’s lives, according to Wang Yi, who said Pakistan and Afghanistan have agreed to mend their uneasy relations.
“The successful implementation of China-Pakistan Economic Corridor (CPEC) projects will serve as a model for enhancing connectivity and cooperation through similar projects with neighboring countries, including Afghanistan, Iran and with Central and West Asia,” said Pakistani Foreign Minister Khawaja Asif.
The Indian authorities are reportedly wary of the project due to its long-time row with Pakistan over Kashmir. New Delhi sees Pakistan-administered Kashmir as its own territory. However, the plan has nothing to do with territorial disputes, according to Wang.
Beijing has been looking to bring Kabul and Islamabad together, partly because of rising concerns over the potential expansion of Islamist militancy from Pakistan and Afghanistan to the Chinese far-western region of Xinjiang, which is engulfed in a separatist conflict.
Minister of Foreign Affairs D. Tsogtbaatar appointed B.Mandakhbileg as a Special Envoy Ambassador to work with the European Union (EU) for Mongolia's removal from the EU's tax haven blacklist.
The Special Envoy Ambassador will manage efforts from the Ministry of Foreign Affairs and Ministry of Finance, and will join the Organization for Economic Co-operation and Development’s Global Forum on Transparency and Exchange of Information for Tax Purposes, being responsible for signing multilateral tax treaties and introducing standards to eliminate tax evasion measures such as base erosion and profit shifting.
Ulaanbaatar /MONTSAME/Mongolian Trade Union of Energy, Geology and Mining Workers (MTUEGMW) protests against increased tax rate on individual income that is set to be effective starting January.
Under the three-year-arrangement with IMF, Government decided to increase income taxes of individuals with a monthly salary of more than MNT1.5 million progressively to 15, 20, 25 percent. “This is a huge blow to mining workers who do labor-intensive work at night”, said Kh.Buyanjargal, head of MTUEGMW.
“Average salary of a mining worker is MNT 2.3 million. This includes field allowances, overtime wages and a bonus for non-standard working conditions. What’s more, we spend 8 months away from our homes and families. For these reasons we can not accept the increase on income tax.”
G.Bayarmaa, Head of Labor Union at Oyutolgoi company said, “The revised law on Personal Income Tax involves 80 percent of employees working in mining industry (37,256 people) , 46 percent of employees working in energy industry (7,360 people). Developed countries like USA and Germany have progressive tax policies that distinguish between single workers and workers with families. For example, US mining worker that has a family pays 15 percent income tax. Our authorities trying to make all workers pay high taxes. Instead, they should seek other ways to improve the economy, like cutting redundant costs.”