The public and private sector convened on March 28 at the “Uniting Power” pre-session for the Mongolian Economic Forum.

State officials presented speeches on the government’s actions, policies, strategies and future targets at the forum, promoting stronger public-private partnership.

One of the highlights of the forum was Head of the Cabinet Secretariat G.Zandanshatar’s presentation on Mongolia’s Three-Pillared Development Strategy, enacted in 2015 with the intention to develop the nation through 27 criteria of nine chapters and three fundamental goals to be achieved by 2050.

The strategy is aimed to establish a just, disciplined, responsible and stable government system, enhance economic competitiveness through a general national development policy, and improve public livelihood. For sustainable economic development, projects will be targeted at food exportation, agriculture, tourism, industry and infrastructure. For governance reform, the government plans to revise the Constitution and reform the legal governance and public services. For public livelihood improvement, a package law to support wealth creators, Development Program for Mongolians, and Policy to Reduce Unemployment and Poverty will be executed.

The government has decided to launch Smog-Free Ulaanbaatar 2020, Shine Khuduu (New Countryside) and Tavan Tolgoi projects along with projects for Industrial and Technical Park for Agriculture, Oil Refinery, Central Wastewater Treatment Plant, Recycling Factory, and New Ulaanbaatar International Airport. Although the government is set on financing these projects through the state budget, private investments, foreign loans, and grants, it has not provided an estimate for their total cost or budget.

Participants were intrigued to find out that the Three-Pillared Development Strategy is expected to open 263,000 new jobs, especially since Mongolia’s unemployment rate fluctuates between 100,000 and 150,000 people.

“One in every three people in Mongolia live in poverty. The biggest cause of poverty is unemployment. Creating new jobs will reduce unemployment,” stated S.Mungunchimeg, the deputy minister of labor and social protection.

TAX REFORM

Another keynote speech was focused on the package tax law reform. Minister of Finance Ch.Khurelbaatar relayed that through the reform, the government hopes to relieve financial burden on entities, raise tax collection base, and mold a legal environment with longer reporting time.

He reported that enterprises, public and private organizations and individuals proposed 1,082 amendments to laws related to tax and that 19 percent of proposals are ready for submission to Parliament. The government rejected 26 percent of all submitted proposals because they requested either excessive discount or exemption.

“A sustainable economy is starting with the tax law package reform,” Ch.Khurelbaatar claimed. He believes that revising tax laws will lessen burden on small and medium-sized enterprises.

According to the Ministry of Finance, 398,000 out of over 100,000 registered companies account for 85 percent of the total tax revenue of Mongolia. Minister Ch.Khurelbaatar reassured that tax revenue will not diminish if the tax rate is lowered.

During the discussion, President of the Mongolian National Chamber of Commerce and Industry B.Lkhagvajav explained, “Lowering tax rate will uncover the underground economy and increase tax revenue.”

Ch.Khurelbaatar declared that the package tax law reform will be approved before the end of July and related procedures and regulations will be passed in November after public discussion sessions. If these laws are enacted, they will take effect starting next year.

The main event of the Mongolian Business Forum will kick off on May 21 and 22 in Ulaanbaatar.

Published Date:2018-04-02