At its regular ninth session, the Citizens’ Representatives Khural of the capital city has approved a resolution to reduce the municipal tax rate, following a proposal submitted by Purevdagva Byaruuzana, Governor of the Capital City and Mayor of Ulaanbaatar.

Under the decision, the municipal tax rate will be reduced from 2% to 1%. The measure is intended to ease the tax burden on businesses operating in the capital, support private-sector activity, improve the business environment and reduce the tax burden on residents amid challenging economic conditions.

Mayor Purevdagva said the capital city currently levies a 2% tax on two categories of goods and six types of services. The tax rate on six types of services—including bars, restaurants, hotels, resorts, car washes, auto repair and maintenance services — will be cut by 50% starting on the first day of the new year.

However, the existing 2% tax on all types of tobacco and tobacco products, as well as alcoholic beverages, will remain unchanged. He added that the city would reconsider the tax on these two categories of products, given their domestic production and added value

The resolution to reduce the municipal tax rate will take effect on January 1, 2027.

Published Date:2026-11-11