Speaker of Parliament discussed Mongolian economic conditions with IMF representatives

Oyundelger 2018-02-06 09:02

Economy

Parliament Speaker Enkhbold.M met with a delegation led by Geoff Gottlieb, head of the IMF Staff Team, and Neil Saker, head of the IMF Representative Office in Mongolia.

Parliament Speaker Enkhbold.M met with a delegation led by Geoff Gottlieb, head of the International Monetary Fund (IMF) Staff Team, and Neil Saker, head of the IMF Representative Office in Mongolia. Within the framework of implementing the Extended Fund Facility, a personal income tax increased from 10 to 25 percent in four brackets and retirement age raised. The issues attracted much criticism from the public.  In response to the parliament’s request to change the decision, the IMF had a positive approach and agreed to reconsider.  As a result, the Parliament approved the Bills to amend the Law on Personal Income and the Law on Pensions and Benefits provided by the Social Insurance Fund, and related parliamentary resolutions last week. With the amendments, the marginal tax brackets are revoked to flat tax rate of 10 percent. The IMF’s support to Mongolian government in implementing the Extended Fund Facility arrangement is alleged to aim at improving Mongolia’s budget and fiscal policy, stop economic downturn and create a sustainable growth. Thus, positive changes in Mongolia’s economy were seen in 2017 and this is the result of a bilateral cooperation between Mongolian government and the IMF. However, due to the fact that Mongolia’s economy is very changeable; therefore it is important to maintain this positive change for the nearest 1-2 years and build a strong immunity against possible further complication according to Geoff Gottlieb. Geoff Gottlieb also mentioned the necessity to take substantial measures in regard to Mongolia’s lower ranking according to the assessment of Asia/Pacific Group (APG) of the Financial Action Task Force (FATF). He asked the Parliament Speaker for rendering support to the Financial Regulatory Committee of Mongolia to tackle this issue.