On April 19, Prime Minister of Mongolia L. Oyun-Erdene held a meeting with representatives of the country’s TOP-100 entities to introduce the bill developed for making amendments to the 2022 State Budget and receive their suggestions. 

“It has been a year since I held a meeting with all of you during the time of strict lockdowns to introduce our MNT 10 trillion program. Although we have returned to our normal way of life thanks to vaccinations, the situation continues to be difficult abroad. Due to this, it has become necessary to amend the 2022 State Budget. 

The amendment consists of three parts: measures against increase in commodity prices, bill on Budget Saving, and measures for decentralization. In the future, it is planned to have the bills we developed discussed by entities through the Mongolian National Chamber of Commerce and Industry prior to the parliament’s first discussion,” said the Prime Minister. 

Following the Prime Minister’s statement, the companies’ representatives put forth suggestions and questions regarding ways to cooperate with the state, and voiced their opinions on a flexible tax policy, workforce shortages, and the implementation of the New Revival Policy initiated by the Government.

Advisor at Nomin Holding LLC A. Shagdarsuren said, “There is a lack of workforce in our country. In order to have Mongolia become a producer country, it is necessary for the state to implement a flexible tax policy. We want to fully process our livestock commodities domestically. The import of these products should be exempt from VAT and customs.”

Director of Jur Ur LLC B. Munkhzul said, “I would like to request that the percentage of VAT be reduced in the framework of the measures against increase in prices. Furthermore, it would be suitable to extend the due dates for large loans being taken by entities for the purpose of investment in their operations. Additionally, as the current legislation states that tax discounts are provided for entities running operations 500 km from the capital city, the distance should be decreased in the framework of the decentralization policy.”

After hearing the suggestions of the representatives, Prime Minister L. Oyun-Erdene said, “So far, 650 public services have become digitally available. If we hold discussions on possible solutions for issues, I believe that there will be a significant change in a year’s time. Thus, we will cooperate with the private sector. In connection with budget saving, there will be changes in the corresponding policy. We shall hold another discussion with entities regarding tax issues. In the framework of the New Revival Policy, works have accelerated, and about 70 percent of projects targeting economic growth have found appropriate solutions.”

At the end of the meeting, he noted that within the framework of decentralization policy, the policy support will be provided for entities creating job opportunities in other parts of the country, and that the article on tax discounts for operations being run at a distance of 500 km will be reconsidered. 

Published Date:2022-04-20