ORKHON RESIDENTS OPPOSE TAX INCREASE, RETIREMENT AGE EXTENSION
Hundreds of residents living in Erdenet city in Orkhon Province rallied in freezing temperatures well below -14 degrees Celsius last Saturday to protest the increase of income taxes. The protesters whistled and shouted their strong opposition against the progressive retirement age increase and increase of personal income tax with banners and signs that read “Don’t raise tax and rob my money for bread” and “The public is exhausted enough”. Another group demonstrated against “unreasonable” retirement requirements for miners.
“We all know that mining workers work in extremely difficult conditions. However, unrealistic legislations that specify for them to work all their life without being able to retire are being enacted,” a protestors stated.
The demonstration was organized by the Democratic Youth Union of Orkhon Province, according to Head of the Erdenet Mining Corporation Trade Union Committee P.Battur. When asked to share details of the protest, he replied, “More than 300 people gathered today (January 6) to express their opposition against the progressive retirement age increase and changes to personal income tax rate, and demand that mining companies pay the same amount of royalty as Erdenet Mining Corporation.”
At present, Oyu Tolgoi Company reportedly pays a five percent fee for using natural resources and gold mines pay 2.5 percent fee, while Erdenet Mining Corporation claims to pay around 16 to 18 percent fee.
“Imposing the same rate of natural resources use fee from mining companies can double revenue to the state budget,” as member of theErdenet Mining Corporation Trade Union Committee said.
The union committee disclosed that the wage of Erdenet mining workers ranges between one million MNT and two million MNT a month on average.
Around 6,000 miners notified that they will join the protest against the new personal income tax rate, reported Erdenet Mining Corporation Trade Union Committee.
“We have faced enough troubles after electing the Mongolian People’s Party. The public hasn’t forgotten the party’s election promise saying that it will not increase taxes or impose new ones. But now, it has increased nine types of taxes – it has ridiculed us,” said one frustrated protester.
Another claimed that Prime Minister U.Khurelsukh is pressuring the public by claiming that “taxing luxury consumption is necessary”. The man questioned if having a monthly salary of 1.5 million MNT should be considered “luxurious” and shouted, “Mongolians don’t need the Mongolian People’s Party’s communist policy that burdens the hardworking people with tax!”
The residents condemned the government for trying to “go through their pockets” when it reported that the economy was recovering and that they had sufficient foreign currency reserves. They reasoned that increasing the personal income tax rate will decrease their wage and lower people’s purchasing power as the public will struggle to make ends meet with the “chicken feed” they’ll earn from now on.
Through the demonstration, the protesters called on the government to reconsider their decision.