Committee sends property tax increase to Parliament

The Standing Committee on the Budget has agreed that Parliament should discuss the proposal to raise property tax from 0.6% to 2%. However, if Parliament appeoves the reaise, all civil representatives’ assemblies will then decide whether they want the increased rates in their areas or not.

Some members in the committee wanted the draft to be rejected. L.Gantomor wondered if such increases will become an annual feature of the combined budget. He referred to the Oyutolgoi agreement where tax rates will not change for 25 years and complained that Mongolian companies could not enjoy such a stable tax environment within 10 years. So many economic entities have had challenges to work under tax.

Ts.Sedvaanchig and D.Zorigt led others in saying that there has to be more revenue from personal income tax and property tax. Raising property tax would also lead to better and more productive use of real estate. The tax does not cover apartments.