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.” 
O.Onon