Mongolia Brief June 24, 2014 Part I
Speaker Z.Enkhbold Gives Interview to ITAR-TASS
Ulaanbaatar,
June 24 (MONTSAME) The Chairman of the State Great Khural (parliament)
Z.Enkhbold Monday gave an interview to Russia’s ITAR-TASS news agency.
He touched
issues of the Mongolia-Russia relations and cooperation, including the
collaboration between the legislative bodies and parliamentary factions and
visa waiving for peoples of the two countries.
Established in
1992, the ITAR-TASS agency has a long-year partnership with Mongolia's MONTSAME
news agency. The two established a cooperation contract in December of 2006.
Permanent Rep Presents Letter of Credence
Ulaanbaatar,
June 24 (MONTSAME) The Permanent Representative of Mongolia to the United
Nations Environment Programme (UNEP) Mr O.Och Sunday presented his letter of
credence to the UNEP Executive Director Mr Achim Steiner, in Nairobi of Kenya.
During this
ceremony, Mr Och introduced to the UNEP Executive-Director environmental and
green development policies the Mongolian government adheres to, also other
related measures, and expressed a satisfaction with the Mongolia-UNEP ties.
After this the sides exchanged views on possibilities of expanding the
relationship.
Mr Steiner
expressed a satisfaction with the governmental policy of Mongolia on a green
development. He underlined that Mongolia is actively participating in the UNEP
Partnership for Action on Green Economy (PAGE), being a good example for
others.
Report on Mongolia’s Foreign Policy Given to Australian MPs
Ulaanbaatar,
June 24 (MONTSAME) The Ambassador Extraordinary and Plenipotentiary of Mongolia
to Australia Mr R.Bold last week gave a report to MPs of Australia, by joint
invitation of the Standing committees on foreign policy and defense and on
trade.
His report
focused on the foreign policy of Mongolia and on the Mongolia-Australia
relations. The Ambassador gave details about key principles of Mongolia’s
foreign policy, touched upon problems, and spoke about an essence of the
"Third neighbor" policy and the latest situation in the bilateral
relations.
The Australian
parliamentarians asked the Ambassador about the bilateral ties, regional
security and a current situation in Mongolia for investors. Some of them
expressed a worry about Mongolian authorities' decision to ban some Australians
from leaving Mongolian territory.
The report has
become a significant event in terms of giving the latest information about
Mongolia, the MPs said.
Related:
Turkish Parliament Speaker Arrives in Ulaanbaatar – Montsame, June 24
Speaker of Grand National Assembly of Republic of Turkey Visits Mongolia
June 24
(infomongolia.com) At the invitation of Speaker of the State Great Khural
(Parliament) Mr. Zandaakhuu ENKHBOLD, the Speaker of the Grand National
Assembly of Turkey (Parliament) Mr. Cemil Cicek and other accompanying
delegates are conducting an official visit to Mongolia on June 23-26, 2014.
On June 24,
2014, the distinguished guests were welcomed at Chinggis Square by Parliament
Speaker Z.Enkhbold and after paying tribute to the Monument of Chinggis Khaan,
Speaker C.Cicek left a note on the Guest Book in the Government House.
Afterwards,
Speakers C.Cicek and Z.Enkhbold held an official talk, where representing
Mongolia Minister of Foreign Affairs L.Bold, Chairman of Mongolia-Turkey
Inter-Parliamentary Group at the State Great Khural, MP A.Bakei, Secretary
General of Parliament Secretariat B.Boldbaatar were present and the other part
was represented by Ambassador Extraordinary and Plenipotentiary of the Republic
of Turkey to Mongolia Mr. Murat Karagoz, Chairman of Turkey-Mongolia
Inter-Parliamentary Group at the Grand National Assembly, MP Fehmi Kupcu as
well as other officials from both sides.
Following the
talks, a Protocol on cooperation between the State Great Khural and the Grand
National Assembly was inked and Speakers Z.Enkhbold and C.Cicek made a
statement to reporters regarding issues discussed and further collaboration not
only in legal sphere, but also Turkish investments in education, housing,
infrastructure, energy and tourism sectors.
The visit of
the Speaker of the Grand National Assembly is being conducted in the scope of
celebration of the 45th anniversary of the establishment of diplomatic
relations between Mongolia and the Republic of Turkey enacted on June 24, 1969.
Today on June
24, Turkish delegates attended opening ceremonies of “E-Library” and
“Publishing House Renovation” projects at the State Great Khural, both
implemented under a funding of the Turkish International Cooperation and
Development Agency.
Mr. C.Cicek
will also visit the Erdenezuu Monastery in Uvurkhangai Aimag and an ancient
Turkic findings museum in the Orkhon valley nearby. During his official visit,
Speaker C.Cicek will be received by the President of Mongolia Ts.Elbegdorj and meet
the Prime Minister N.Altankhuyag and other officials. Link to
article
Z.Enkhbold Welcomes His Turkish Counterpart
Ulaanbaatar,
June 24 (MONTSAME) Parliament Speaker Z.Enkhbold welcomed Tuesday morning his
Turkish counterpart Mr Cemil Cicek on the Chinggis Square.
After the
Speakers together with spouses and accompanying them officials paid respect at
the monument to Chinggis Khaan, Mr Cicek wrote his impression in the Honor
guest book at the State House. Following this ceremony, the two dignitaries
began official negotiations. They will also sign an inter-parliamentary
cooperation protocol.
MonNOC President Meets Athletes
Ulaanbaatar,
June 24 (MONTSAME) A president of Mongolia's National Olympic Committee
(MonNOC) D.Zagdsuren and his deputy J.Khatanbaatar received Monday Olympic and
World medalists on occasion of the International Olympic Day.
The meeting
discussed how these medalists--some 20 people--could promote their contribution
to the Olympic Games propaganda, to discover young talents, to give education
about the Olympics.
The medalists,
who have been receiving life-long allowance, have established a fund to boost
the sports here. They thanked the President on his decree about the
allowance.
Bestseller Books Named by Internom
Ulaanbaatar,
June 24 (MONTSAME) The “Internom” bookstore Monday named bestseller books at
its store from 16 to 22 June.
The "Lean
In: Women, Work, and the Will to Lead" by Sheryl Sandberg became the top.
Published first in 2013, this book led the chart of bestsellers by the New York
Times for 12 weeks, and was the top book for business of the Year. As of
present, the book has been translated into 30 languages including Mongolian. It
urges women to have own goals and an ambition to lead.
Sheryl
Sandberg’s book was followed by “Hidden fires” by Yo.Otgonbayar, which tells
about brief history of the Mongolians’ fight for the independence. "The
Girl Who Played with Fire" by Stieg Larsson was placed third.
Other
bestsellers were "Sorghaghtani" historical roman by B.Sarantuya,
“Mongolians: In beginning of 20th century” by O.Batsaikhan, “Bat the Good King”
by B.Sarantuya, Oxford English-Mongolian dictionary, "The Man Who
Laughs" by Victor Hugo, "Green-eyed monk" by Ts.Oyungerel, and
"One Hundred Years of Solitude" by Gabriel Garcia Marquez.
The Second Phase of Tax Reform
June 24
(Mongolian Economy) The first phase of tax reform took place between 2007 and
2012. Its Four 10s Tax Policy (value-added tax, corporate income tax, personal
income tax and social insurance tax) helps make Mongolia one of the least taxed
nations, not only in Asia but in the world. The government is launching the
second phase of tax reform this year through to 2017.
Two discussions
were held on May 30 and June 10 this year, involving representatives from the
State Great Khural, government and private sector.The former took place at the
Citizens’ Hall in the Government Palace under the theme of “Value-added Tax and
Commercial Tax.” That event was moderated by S. Bayartsogt, a member of
parliament and the head of the working group for tax reform. The latter was
themed “Let Us Decide Through Reform” and was organised by the
government.
The bill on raising the value-added tax threshold to MNT 50 million is now in active discussion. But it is not clear if the bill is going to be passed by the Khural before the spring session is wrapped up.
The bill on raising the value-added tax threshold to MNT 50 million is now in active discussion. But it is not clear if the bill is going to be passed by the Khural before the spring session is wrapped up.
According to
the government’s main action plan, the current tax reform aims to create a
stable tax setting in which tax would meet the principles that are expected to
be simple, clear, equal and fair while contributing to the economy and meeting
international standards.
Under the 100
Day Action Plan, initiated by the government on May 10 this year, the second
phase of tax reform follows laws that have been approved by the State Great
Khural on June 6 this year. For example:
The Law on
Exempting Imported Equipment from Customs and Value-Added Taxes aims to support
SMEs,
The Law on
Delaying Customs and Value-Added Taxes for two years aims to reduce costs
during the period of increasing investment, supporting infrastructure work and
removing hindrances caused by delays in equipment supply
These laws took
immediate effect.
As a part of
the tax reform, the following legislations have been submitted to the Khural
for approval:
Legislation on Refunding 90 percent of Corporate Income Tax paid by companies with revenue of up to MNT 1.5 billion a year, according to the main action plan by the government.
Legislation on Refunding 90 percent of Corporate Income Tax paid by companies with revenue of up to MNT 1.5 billion a year, according to the main action plan by the government.
An updated
version of the Value-Added Tax Law that is expected to be consistent with
international standards. The updated version includes raising the VAT threshold
to MNT 50 million, clear definitions of some ambiguous legal terms in the
current law, and refunding 20 percent of VAT paid by end users.
Based on
request by the Mongolian Bankers Association, the Corporate Income Tax Law is
to be amended in terms of imposing 10 percent tax on tax payers who are not
based in Mongolia and who have purchased bonds from Mongolia’s commercial
banks. By approving this legislation, the commercial banks’ loan rates are
expected to decrease.
An updated
version of the Accounting Law and Auditing Law aims to reduce operational
hindrances for the submission of financial statements by companies. If
approved, SMEs and companies would be able to submit their financial statements
online once a year and the companies would not necessarily receive audits on
their financial statements.
There is also
urgent need to reform tax enforcement and the services provided by tax
departments. That is why Mongolia’s tax policy is being directed towards
simplified tax reporting and tax payment with online tax filing. All tax payers
can now submit their tax reports and make tax payments from anywhere and
whenever rather than submit paper documents in person at the tax office.
A brand new
agency called the “Tax Debt Prevention Centre” is expected to launch to provide
tax payers with information on tax debt and remind them about possible debt-related
risks in the future.
The government is adhering to its tax policy not to implement tax hikes or introduce new taxes. Tax laws are to be clear and easy to understand, while the law enforcement is to be simplified.
The government is adhering to its tax policy not to implement tax hikes or introduce new taxes. Tax laws are to be clear and easy to understand, while the law enforcement is to be simplified.
North Korean Delegates Visit Mongolia to Exchange Experiences in Tourism Sector
June 24
(infomongolia.com) On June 20-25, 2014, North Korean delegates led by Deputy
Director-General of the National Tourism Administration of the DPRK Mr. Mun
Tae-gil are conducting a working visit to Mongolia and during their stay in
Ulaanbaatar, delegates attended a workshop "Mongolia's Tourism Sector's
Development Prospects and Further Policy to Adhere".
The visit is
being implemented following up a state visit of the President of Mongolia
Ts.Elbegdorj to the DPRK conducted last year that aims to introduce Mongolia’s
tourism sector’s policy being carried out, to broaden bilateral collaboration
and exchange experiences in the relevant sphere.
On June 23,
2014, the North Korean delegation was received by Minister of Culture, Sports
and Tourism Ts.Oyungerel, where parties shared views on broadening cooperation
in tourism sector and on the same day, Deputy Minister of Foreign Affairs
D.Gankhuyag also held a meeting with delegates.
In the
frameworks of the visit, North Korean delegates intend to visit the main
tourist destinations of Mongolia, besides to visit the Institute of Finance and
Economics in Ulaanbaatar meeting Mongolian private entities to introduce DPRK
investment policy in their tourism sector and discuss an issue on training
professional personnel.
Minister for Nature, Environment and Green Development of Mongolia, S.Oyun Elected to Chair UN Environment Assembly
June 24
(infomongolia.com) On June 23, 2014, the first-ever and considered historic UN
Environment Assembly has been commenced in Nairobi, the Republic of Kenya,
where over 1,200 participants, UN 162 member-states and 90 Ministers are
attending the Assembly with 40 events.
The event, to
continue until June 27, is aimed to discuss governance of environmental law,
green economy financial mechanisms, illegal trade in wildlife, environmental
sustainable development goals (SDGs) as well as the Post-2015 Development
Agenda, including sustainable consumption and production.
In the scope of
the United Nations implementation towards environmental issues, the Governing
Council of United Nations Environment Programme (UNEP) decided to enlarge the
UN Environment Conference into UN Environment Assembly at its first universal
session held in February 2013, where all UN member-states are accredited to be
member of the Assembly.
Moreover,
Assembly members unanimously agreed promoting Minister for Nature, Environment
and Green Development of Mongolia, Mrs. Sanjaasuren OYUN to chair the Assembly.
Mongolian
delegates attending the UN Environment Assembly introduced the country’s
environment and green development policies carried out by the Government of
Mongolia and participated in relevant meetings, moreover sharing its experience
in the “Partnership for Green Economic Activity”.
Mongolia’s General Department of Taxation Issues Tax Act of 130 Million USD Addressing Oyu Tolgoi LLC
June 24
(infomongolia.com) Today on June 24, 2014, Mongolian finance service and
investment management company, “Mandal Asset Management” announced that the
General Department of Taxation of Mongolia issued a Tax Act of 130 million USD
addressing the Oyu Tolgoi LLC, where the report conclusion says the Company
paid less tax and other financial violations in the first phase of the
development of Oyu Tolgoi Project.
On the same
day, the Oyu Tolgoi LLC released a quick response noting Turquoise Hill
Resources’ statement in response to the Mongolian Tax Authority’s Tax Act
asserting unpaid taxes, and other financial matters, relating to the first
phase of the development of the Oyu Tolgoi project. Oyu Tolgoi LLC does not
agree with the report’s conclusions. As stated by our majority owner, Turquoise
Hill Resources, the shareholders will work through appropriate dispute
resolution processes, in accordance with Mongolian tax law and the Investment
Agreement, which may result in international arbitration.
President and
CEO of Oyu Tolgoi LLC, Craig Kinnell said, “We regret this development.
However, our commitment is to continue to legally operate the Oyu Tolgoi mine
and look after the health and safety of our over 6,000 employees and
contractors, who are focused on making the operation sustainable, profitable
and internationally competitive”.
Six dead, 43 injured in bus accident
June 24 (UB
Post) A long-distance bus traveling from Baruun-Urt to Ulaanbaatar reportedly
skidded off the road while trying to pass another vehicle and flipped over four
to five times, leaving six people dead and 43 people with either severe or
minor injuries, at around 7:30 a.m. on Saturday.
Five passengers
died at the scene, and one passenger died en route to the hospital. The
deceased were three men and three women.
The incident
occurred three kilometers from Tsonjin Boldog in Erdene soum of Tuv Province.
There were 48 passengers on board and 14 out of the 48 were children from seven
months to 18-years-old.
Social media
reported that a pregnant woman on the bus suffered a miscarriage due to the
crash, however the National Trauma and Orthopedic Research Center (NTORC)
doctors confirmed that there were two pregnant women on board and neither of
them had miscarriages. They received minor spinal and cerebral injuries and are
receiving treatment. Both of them are in stable condition.
All of the
injured were immediately transported to the NTORC and 19 people are still
hospitalized. Two of them are unconscious in the intensive care unit, eight are
in the spinal treatment ward, and nine more are receiving treatment for
cerebral injuries.
The bus is
owned by local bus operator Daichin Sukh LLC. A working group involving Deputy
Minister of Roads and Transportation Kh.Yerjan, delegates of the National Auto
Transportation Center, the Sukhbaatar Province Auto Transportation Authority,
and Daichin Suikh LLC is working at the scene.
We want a ‘Glass Purse’
June 24 (UB
Post) Arguably the most powerful anti-corruption bill was once again put forth
to Parliament last Thursday. The Glass Account bill, which was drafted by
President Ts.Elbegdorj to increase the transparence of state budget spending,
was previously turned down due to a “naming and terms” issue.
If passed, the
Glass Account bill would prompt all state and provincial government financed
businesses, ministries and agencies to report their spending on their website
immediately.
According to
J.Tumurbaatar, Deputy Head of the National Property Committee (which will be in
charge of implementing the bill if passed) the bill will ensure timely action
against improper spending of the state budget and give access to the public on
what taxpayer money is being spent on.
“In short, by
introducing [the Glass Account] bill, corruption, the abuse of power, and
wrongful spending of the budget can be monitored by the public, and timely
action can be taken to prevent or create accountablity for such actions…
According to today’s laws, the state budget is approved on December 1 of each
year, and budget holders report their spending within the first month of the
year.
The results of
the National Audit of the previous state budget spending is announced while the
next year’s budget is being discussed. This means that the public has no way of
monitoring spending while it is taking place. But if passed, the law will allow
the people to monitor starting from September this year,” he told news.mn.
The Glass
Account bill was previously denied by Parliament in late April, after many
petty and unproductive debates about its name, and not about its content.
During the
Parliament session of April 20, MP and former Justice Minister Ts.Nyamdorj said
while discussing the Glass Account bill, “What is a ‘Glass Account’ law? Can a
law with such a name exist?
To my
understanding, it seems like a law will be stated on glass. What kind of an
account is that? I understand that the budget account needs to be more open,
but state the names of the countries that have a law with this name.”
During the
discussion, it was clear that MPs were determined to touch on all other aspects
of the law, expect the most important ones, its implication and necessity.
Other MPs echoed Ts.Nyamdorj’s comment about the name of the law.
When asked
about why the bill wasn’t approved, P.Tsagaan, the President’s Chief of Staff
said, “It is possible that we might have been careless [about formulating the
bill], thinking that the law would be passed. This is a law that created a lot
of anticipation among the public. But MPs have dropped the law after much
criticism of the word ‘glass’. This is a simple concept for everyone. Glass is
a transparent material. The word was chosen to symbolize transparent state
operations, state budget spending and its public monitoring. But members chose
to focus on how it will translate into the languages of the UN. ‘Glass Account’
can be translated in all languages.”
P.Tsagaan also
remarked that the interests of some politicians might have influenced the
decision, as 90 percent of the public approved of the law in a poll conducted
by the Office of the President.
And so, at last,
the bill was resubmitted to the parliament, and discussed last Thursday.
The issue of
changing the name was once again raised by MP Su.Batbold, who stated, “This law
was rejected once before. Members wanted the name changed. Poetically named
laws are not necessarily good laws. This ought to be looked into.”
MP D.Demberel
complained that the law requires all establishments with state and provincial
funding to report their spending online and pointed out that not all
settlements in Mongolia have access to the internet, therefore it cannot be
accessed by them. He added that it’s the “implementation of the law” that he is
most concerned about.
The final
decision on the law was postponed and the issue was left at that in Thursday’s
meeting.
To me, and to
the majority of voters and taxpayers, this law is essential for eliminating
corruption, one of Mongolia’s biggest concerns. Mongolia is listed 83 out of
177 in the Global Corruption Perception Index by Transparency International,
with only 33 points out of 100.
The social
stigma and challenges corruption presents for the people of Mongolia everyday
are broad and unavoidable. The Glass Account bill will allow the public to see
and judge for themselves whether their tax money, government bonds and loans
that taxpayers must pay off, is being spent productively or on ventures that
are fruitless, as is so often the case.
MPs are
currently concerned about menial, if not irrelevant, aspects of the law, such
as its name. In this day and age, when mobile phone services and internet
connections can be set up easily pretty much anywhere around the globe, MPs
don’t have an excuse in saying that a critical law that will protect the
interest of millions cannot be passed because some villages have no internet
access.
The fact is
that Mongolia needs to eliminate corruption if it is to benefit from its
mineral riches, and taxpayers have the right to know how the government is
spending their money. The state budget is not the property of ministers or
governors, it is the public’s. The state is merely entrusted by the public to
act and spend on their behalf for the public good. If state spending reports
are made available to the public, the public can judge whether or not their
money is being spent wisely.
If
businesspeople invest in a company, they have the right to know how the company
will spend their investment, and how they will be paid back. The same goes for
taxpayers and voters. If a company doesn’t reveal how they spend their money to
its investors, nobody will invest. But taxpayers don’t have the luxury of
choosing not to pay taxes, we are forced to pay, but we can choose who sets the
taxes.
We – the public
– need to know how our money is being spent, it is our right.
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