Mongolia Brief February 3, 2015 Part I
Energy
Minister receives US Ambassador
By B.
Amarsaikhan
Ulaanbaatar,
February 3 (MONTSAME) The Minister of Energy D.Zorigt received Tuesday the
Ambassador Extraordinary and Plenipotentiary of the USA to Mongolia Ms Piper
Campbell.
Mr Zorigt
mentioned that the consultants of the US Agency for International Development
has served in the development of Mongolia’s general legal document on Energy,
the Law on Energy which was adopted in 2001, and cooperated actively in
introducing to Mongolia’s energy sector the model of one purchaser and in
establishing the Energy Adjustment Bureau. He said that the USA has made
enormous contribution in settling the contemporary tariff system.
The wind
turbines of the General Electric have been operating normally since the commissioning
of the Salkhit Wind Park, located in Sergelen soum of Tov aimag, added the
Minister.
“In regard of
the upcoming implementation of the Second Millennium Challenge Account program,
the Ministry intends to include its intention to establish Thermal Power
Stations in ten aimag centers in the financial plan of the program” he said and
requested the Ambassador’s support on this matter.
He also asked
the Ambassador to study the possibilities for the USA to share its practices
with Mongolia on promoting energy sector with legal provisions, and to invite
again the experts who co-developed the tariff system in Mongolia.
Ms Campbell
thanked the Minister for receiving her and expressed her satisfaction with the
expansion of Mongolia-US relations in energy sectors. She also promised to
pursue the requests of the Minister and put efforts to mobilize them.
Standing
committee head meets US Ambassador
By B. Khuder
Ulaanbaatar,
February 3 (MONTSAME) Head of the parliamentary Standing committee on
environment, food and agriculture S.Batbold Monday received Ms Piper Anne Wind
Campbell, the Ambassador Extraordinary and Plenipotentiary of the USA to
Mongolia.
Expressing the
satisfaction with meeting the US Ambassador, the Standing committee head
underlined the Mongolia-USA relations and cooperation have been developing in
many spheres. He thanked the Board of the Millennium Challenge Account (MCA)
for making a decision to involve Mongolia in the second Compact Contract, and
then said the previous project has been implemented successfully.
Mr Batbold
emphasized Mongolia is working to make the agriculture and food priorities of
the national economy although the mining sphere plays a crucial role in it, so
the country intends to augment the meat production and to export it to foreign
countries.
Thanking the
Standing committee head for an audience, the US Ambassador pointed out the
MCA’s next project is about to be realized in Mongolia. So, Ms Campbell
recommended that Mongolia now should analyze factors causing difficulties to
the national economy because the project will be implemented at a high level in
terms of time and development range.
The Ambassador
said she is confident the US side will deepen the ties and collaboration with
Mongolia in it.
16
MPs submit survey answers to Minister of Mongolia
February 3
(news.mn) Sixteen Members of Parliament have delivered questionnaire answers to
Minster of Mongolia M.Enkhsaikhan regarding issues of the development of the
Tavan Tolgoi deposit and the nation's economy.
The issues
addressed in the questionnaire include: clarification of whether or not
Mongolia can hold 51 percent of the Tavan Tolgoi investment, whether the 267
kilometer Tavan Tolgoi-Gashuunsukhait railway will be owned by Mongolia, and
how the 1,072 shares disseminated to the Mongolian people will be handled
following the selection of an investor. The questionnaire covered more than 20
questions and was submitted in the parliamentary session.
M.Enkhsaikhan
posted on Facebook, “I have received the questionnaire signed by the Members of
Parliament this morning. The questionnaire contains important questions to
create integrated ideas. I will give a written answer to it."
The Minster of
Mongolia gave information regarding Tavan Tolgoi at a recent meeting of the
Democratic Party and presented a discussion of the project.
Book
club calls for books as gifts on Tsagaan Sar
February 3
(news.mn) Members of the club Let’s Be Friends with Books appealed to the
public to give books as presents during the celebration of the traditional
Mongolian holiday Tsagaan Sar, in a press conference held on February 2.
The press
conference was led by Head of Let’s Be Friends with Books N.Khulgen, Executive
Director of the Liberal Women’s Intellectual Fund Ts. Bujidmaa, Head of the
Young Politician club B.Turbold, and Director of Grace of God
N.Munkhbyar.
"It has
been many years since Mongolians began to encourage the Chinese economy instead
of supporting domestic production. Moreover, the currency exchange rate
is increasing every day and we are still continuing to buy socks, tights, and
shampoos as Tsagaan Sar presents. Instead of this, we should give books as
presents," stressed N.Khulgen.
This appeal
from Let’s Be Friends with Books started three years ago. The club is going to
announce a sale of discounted books at the Sovereignty Palace of Mongolia.
President
Ts.Elbegdorj receives Ambassador Christopher Stuart
February 3
(news.mn) The President of Mongolia, Ts.Elbegdorj, has met with Ambassador
Extraordinary and Plenipotentiary of the United Kingdom to Mongolia,
Christopher Stuart. Ambassador Stuart is going to return to the UK after the
end of his appointment in Mongolia.
At the
beginning of the meeting, Ambassador Stuart expressed his gratitude to the
President of Mongolia.
President
Ts.Elbegdorj said, “We would like to express gratitude for your considerable
contributions to the development of cooperation between our two countries
during these three years of work as an ambassador.”
The United
Kingdom is one of the first countries to acknowledge Mongolia as an independent
country. The diplomatic relationship between Mongolia and the UK was established
in 1963, and since that time, the relationship between the two countries has
been developing continuously.
The President
mentioned that Mongolia has future plans for cooperation with the United
Kingdom in the mining sector and the stock exchange market.
President
Ts.Elbegdorj noted that cooperation in the economic sector has been developing
more rapidly in the last few years. He expressed his hope for success in the
future work of Ambassador Christopher Stuart and wished him good health.
Thank
you for NOT littering!
By B. Nyamdari
February 3
(gogo.mn) "Thank you for NOT littering" campaign has organized flash
mobs with the public.
People tend to
think that flash mob is normal activity which gathers group of people in some
area and performs only dancing or singing. However, it means a group of people
perform well organized and unusual activity, which is to mobilize
public to volunteer work.
Thus, we are
delivering such unusual flash mob videos that were organized in Ulaanbaatar
city.
Let`s join in
"Thank you for NOT littering" campaign by putting garbage in litter
bins.
Maternity
hospital with 150 beds is planned for construction
By R.
Adiyasuren
February 3
(gogo.mn) Children hospital with 100 bed is to be constructed in Chingeltei,
Khan-Uul and Bayangol districts with financing from the city budget in scope of
conditions such as lack of hospitals and votes of residents.
Moreover, the
following tasks will be done in accordance with the implementation
plan of City Governor`s 2013-2016 Action Program, social and
economic goals for 2015:
·
New building of
"Amgalan" maternity hospital (3rd maternity hospital) with
150 beds is to be constructed
·
Medical Center building with 300 beds is to be
built by concession agreement in 2nd khoroo of Nalaikh district
·
Buildings of Medical Center and Drug Clinic in
Tuul village is to be constructed by concession agreement
·
New building of medical center in Khonkhor
village is to start operation.
Was
Economic Transparency Law REQUESTED?
By B.
Erdenechimeg
February 3
(gogo.mn) It has been long since we have started talking about economic
transparency. Words like transparency, open and accessible have been
circulating extensively in our vocabulary so that Economic Transparency law
started to convey positive notion. This law has been in discussion for very
long time.
Mongolian
Business Summit June20, 2014. Ch.Saikhanbileg, Head of Cabinet Office,
representing Government of Mongolia.
“We need to
make the economy transparent. Our tax system is not perfect yet. There are many
unresolved and unchanged issues in the past 20 years. This law will give the
businesses one time chance. After that there will be no shadow economy. We have
initiated this law in order to reveal the hidden cash.”
From the above it can be understood that
with the law Mongolian tax system will be strengthened and put an end to the
shadow economy.
December 10, 2014, B.Lkhagvajav, President
of Mongolian National Chamber of Commerce and Industry.
“We are working
to have the Economic Transparency law to be approved within next one month’s
period. We will cooperate with Speaker Z.Enkhbold on this matter.
Mongolia needs Financial Reforms in order to move from its current position.
This law should have been discussed back in May, but was postponed. If it was
approved then we could have started the financial reforms starting the July
1st. The law enables the individuals, businesses to increase their profits with
right financial tools. Businesses and entities could have started their
operations anew. With tax return system enforced entities, businesses and
individuals will pay their taxes.“
From above statement it can be understood
that Economic Transparency law will enable the individuals, businesses and
entities to start from the same start line with financial reforms. But it lacks
to explain why entities and businesses that have been having their operations
for 25 years need to start anew at the same starting point.
January 30, 2014, Interview of T.Ganbold,
CEO of Altan Dornod Mongol LLC to Udriin Sonin newspaper
“If we had
approved this law earlier, we could have started having the benefits earlier as
well. I have doubt that even the economic downturn could have had different
turn. It has been 25 years since Mongolia transitioned to market economy. First
five years has been like wild capitalism. No one had proper business skills and
every one was avoiding taxes. Most of the politicians have come up this way.
Companies and businesses have been having double reporting. ”
His conclusion was not to blame the
individuals and businesses, but more sudden transition of the economy and the
systematic anomaly.
January 12, 2015, O.Orkhon, President of
Mongolian Bankers Association
“As of the
Economic Pardon Law we tried this once before. I don’t think hidden cash that
has already been transferred overseas will come back. There is no such thing.
Entities and individuals at Narantuul market never expose their income, it is
wired through private accounts, and most of them are avoiding taxes. Everyone
in Mongolia knows this. We cannot continue and we in desperate need of
regulating this state. I support the idea. But on the other hand for those who
were paying their taxes it is somehow unfair. Why the state should pardon so
frequently? Many will think that if the state pardons from time to time it
would have been beneficial to avoid taxes.
The law should
clearly state the benefits and fines of paying and not paying the taxes. But
the government is not giving solutions for this procedure. Taxes have been
raised. But now they are talking about giving tax returns. Taxes should be
imposed in similar manner and give the businesses same conditions.”
January 6, 2015, MP U.Enkhtuvshin at the
Legal Standing Committee discussion
“Economic
Transparency Law should be approved immediately. Politicians should be left
from this process. Probably there will be some cases raised for some
politicians who have put their hands on Chinggis Bond money. The law should
regulate businesses only.” The same view was expressed by MP J.Batzandan as
well.
January 7, 2014, B.Lkhagvajav, President of
Mongolian National Chamber of Commerce and Industry.
“There are two
reasons why the law wasn’t approved. Two provisions of the law have become the
obstacles; first is the provision, which states that the individual under
investigation does not fall under this law and the second provision, which
states that anyone who comes open with their income statements to fall under
the law. Businesses now struggling to raise funds from the capital markets as
their income statements have been having double standards. The law helps to
improve the tax system as a whole and will assist in overcoming the economic
downturn.”
Experts and
officials have been discussing the Economic Transparency law from different
angles. Other MPs who defend the Economic Transparency law are
B.Garamgaibaatar, Head of Economic Standing Committee, R.Gonchigdorj,
S.Bayartsogt, Kh.Temuujin and B.Narankhuu.
While the
Cabinet Office have given the following information:
During
2007-2008 entities have been pardoned from some taxes and social welfare fees.
This time on top of social welfare fees and taxes immovable property and legal
registration, accounting and income statements are to be included. For
instance:
·
Social welfare fees and taxes
·
Immovable property and legal registration
·
Lack of income statement and devalued income statement
·
One time pardon to entities and individuals with
correct income statements
The duration of
voluntary income statement reports will be 6 months starting from the date that
law enforces.
Outcomes
Implementation
of law will ensure the economic transparency
and fairness and strengthen the tax
structure. The most important outcome will be the correct reporting information, which will enable to determine
the economy with realistic numbers.
The law
provisions to pardon from the legal and criminal outcomes related with double
booking, but also provisions the cases that won’t fall under this law.
Although this
law seems very right to be approved and implemented immediately it still lacks
the research in several fields:
·
National Statistics Office (lack of studies on
shadow economy and whether the shadow economy will come open with the
implementation of the law)
·
General Taxation Authority (how many entities,
businesses and individuals to be pardoned?)
·
Ministry of Finance (which entities have been
pardoned during the 2007-2008 and what positive outcomes this had on economy?)
·
Ministry of Justice (who or which experts
participated in the drafting of the law, has the working group involved
independent economy experts and professional associations?).
If the
officials at government and drafter have come up with open information on the
above-unanswered questions many would not have doubted this law.
As long as the
state institutions haven’t done their homework on that civil institutions are
criticizing the law as the Economic Pardoning Law emerged together with
Economic transparency law, which provisions that information of the pardoned
entities should be hold, leading to the conclusion that this law was pretty
much drafted by REQUEST.
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