Increase on personal income tax waived

Oyundelger 2018-01-30 08:01

Economy

IMF`s working group has been working in Mongolia to review the Extended Fund Facility program`s third stage.

International Monetary Fund (IMF)`s working group has been working in Mongolia to review the Extended Fund Facility program`s third stage. One of the negotiated issues was to invalidate the progressive tax imposed on people who have seasonal works such as those work in construction and mining sectors. Increasing the tax was one of the main requirements by the Extended Fund Facility program to stabilize the economic crises of Mongolia. On the fifth day of the review meeting, the Mongolian government and IMF reached an agreement on waiving personal income tax increases at all levels. Mongolian Prime Minister said that we are now working on making amendments to the Law on General Taxation, along with Law on Corporate Income Tax and the Law on Personal Income Tax. The premier further noted that the government will grant reimbursement for January tax increases that were paid. Progressive tax increase had come under the public scrutiny when the government accepted the requirements of the extended fund facility by the IMF to overcome the economic difficulties.