Tax rev­enue to in­crease by 607 bil­lion MNT in 2018

The UB Post - - BUSINESS & ECONOMICS -

In the 2018 state bud­get, the gov­ern­ment ex­pects rev­enue from taxes to in­crease by 607 bil­lion MNT or 10.7 per­cent com­pared to the to­tal ex­pected rev­enue in 2017.

The main fac­tors for the in­crease will be in­creases in the in­come tax, the so­cial in­sur­ance fee, and the rev­enue from the value added tax (VAT). In 2017, seven types of taxes were in­creased as part of the agree­ment with IMF to en­roll into the ex­tended fund fa­cil­ity.

As part of the IMF agree­ment, the ex­cise tax on al­co­hol and tobacco, the per­sonal in­come tax, and the so­cial in­sur­ance fee will all be in­creased in 2018.

The changes in the tax law means that be­gin­ning in Jan­uary 1, 2018, the per­sonal in­come tax or the tax im­posed on any other type of per­sonal in­come will be in­creased to up to 25 per­cent. In par­tic­u­lar, those clas­si­fied as high-in­come in­di­vid­u­als will see the most in­creases in their taxes. For in­stance, those with a per­sonal monthly in­come of 2.5 mil­lion MNT will pay a 11.2 per­cent in­come tax while those earn­ing four mil­lion MNT will pay a 15.1 per­cent tax.

Cur­rently, there are 900,000 reg­is­tered tax­pay­ers in Mon­go­lia, 95 per­cent of which will be pay­ing less than 10 per­cent in in­come tax while the re­main­ing five per­cent will be pay­ing higher than 10 per­cent.

In April 2017, Par­lia­ment ap­proved an amend­ment to the tax law, im­pos­ing a tax on the in­ter­est rates earned by cit­i­zens sav­ing their money in com­mer­cial banks. It is fore­cast that the tax on the sav­ings in­ter­est will bring 46 bil­lion MNT in rev­enue in 2017 and 67 bil­lion MNT in 2018 to the state bud­get.

Newspapers in English

Newspapers from Mongolia

© PressReader. All rights reserved.