Cabinet reviews education, mining, and social issues
Cabinet held a meeting on August 1 to review and discuss several issues regarding mining, infrastructure and education.
After the meeting, Minister of Education, Culture, Science and Sports Ts. Tsogzolmaa reported about the outcomes from the meeting.
The minister emphasized that the government will support innovative startups with tax-exemption policies to diversify the country’s mining-dependent economy. She noted that startups will be exempt from valueadded tax and import tariffs on their high-end equipment.
The first phase of the government’s policy will be carried out from 2018 to 2021, and the second phase of the policy is expected to be carried out from 2022 to 2025.
Under the first phase, high-priced equipment and machinery that promote start-up companies to produce innovation products through innovative scientific and technological advancements, will be exempted from customs duty and value-added tax. As of August 1, some 21 start-up companies have requested tax exemption for 567 types of equipment and machinery worth 29.5 billion MNT from the ministry.
According to experts, some 11 start-up companies have been approved to be provided tax exemptions worth 500 million MNT for importing equipment and machinery of innovation and nanotechnology of 148 different types costing 10 billion MNT. These start-up companies expect to make a profit of 73 billion MNT in the future.
Ts. Tsogzolmaa said, "As a result of the government’s efforts, the nation’s economy is on track to stabilize, and to keep its efforts for continuing the economy’s stabilization and diversification, the government agreed to carry out a multi-pillar development policy based on science, technology and innovation."
As the mining industry contributes to about a quarter of the country's GDP and more than 90 percent of exports, the nation’s economy plummets when coal and copper prices go down in the global market, which is why the government is focusing on diversifying the nation’s economy for the past two years by investing in non-mining sectors such as agriculture, education, and food, said the minister.
The prime minister instructed Cabinet ministers to take urgent measures to carry out tasks which were assigned to Cabinet, ministers, agencies’ heads, provinces and the capital’s mayors through resolutions of Parliament, Cabinet and parliamentary standing committees, the president's decrees, and decisions of the National Security Council.
During the meeting, Minister of Mining and Heavy Industry D. Sumiyabazar introduced other ministers to an ongoing preparation about offering 30 percent of the total shares of Erdenes Tavan Tolgoi JSC on the global market. According to Minister D. Sumiyabazar’s report, as the country has a lack experienced people who have worked on such megaprojects, Cabinet should hire foreign experienced consulting firms that will provide Cabinet with legal, financial, technical and other consulting services which are required to fulfill the project.
The ministers agreed to submit essential documents and studies about Baganuur Power Plant Project to the National Security Council to listen to the council’s final decision about whether the government should implement the project or not.
Ministers of justice and internal affairs; labor and social protection; health; and education, culture, science and sports, and the mayor of Ulaanbaatar were assigned with studying and improving the social welfare government policies and documents towards unemployed and homeless people.
As of July 1, there are 1,375 homeless people in the country and more than a half of them are people between the ages of 18 and 45, and able to work.
During the meeting, Cabinet reviewed a draft memorandum of understanding between the governments of Mongolia and Australia on a work and holiday visa program that aims to make it easier for young Mongolians and Australians to experience life in each others’ country.
The memorandum outlines the issuance of the visa, entry, stay and working condition, removal, suspension and dispute resolution.
A Mongolian applicant for Australian work and holiday visa shall hold a tertiary qualification, or have successfully completed at least two years of a university, holding at least a 4.5 IELTS score, with a booked flight ticket, and possessing sufficient funds for personal support for the purposes of the proposed period of work and holiday in Australia.