PRIME MINISTER PROMISES TO CLEAN UP LAND TRADE AND MINING LICENSES
Prime Minister U.Khurelsukh said his Cabinet will be actively fighting the injustice and corruption that has affected land trade and the issuance of resource licenses during discussions about the 2018 state budget in Parliament.
The Prime Minister underlined how injustice in these two issues has caused resentment and outcry from the Mongolian people. He called on Parliament to end the chaotic system that has taken place in land trade and resource licenses.
“The current system basically gives away land and mining licenses to only a few companies and individuals, who own them by the hundreds. Those companies and individuals sell their licenses and land through loopholes such as transferring and gifting, which allow them to avoid paying taxes. Cabinet will be focusing on stopping this system,” U.Khurelsukh said.
By reforming related legislature, a more transparent and open system which sells land to businesses and individuals through auctions will be created, Cabinet believes. According to the Prime Minister, Cabinet is in the process of drafting a bill regulating land trade and resource licenses, which will help increase revenue to the state budget by 36 billion MNT by 2018.
The new bill being drafted by Cabinet includes improvements to the registration system for keeping track of land owners, profits from land, and transactions and transfers. Through this, Cabinet will impose taxes on transactions of land or resource licenses. Failure to register and attempt to hide activities will result in the revocation of land or resource licenses.
Due to the number of formal complaints from businesses and individual to the Ministry of Mining regarding mining licenses, Minister of Mining D.Sumiyabazar suspended the issuance of mining exploration licenses as his first major move since being appointed.
As of 2017, there are 1,596 mining operation licenses, 1,880 exploration licenses, and 3,476 licenses in total.
Prime Minister U.Khurelsukh has stated his Cabinet will intensify efforts to combat injustice and corruption in
land trade and resource licensing