‘Capital City Tax is not a strain’


Ulaanbaatarians are going to start paying city taxes starting October 1. One of the most controversial laws passed at the spring session was the Capital City Tax (CCT) law. Some parliament members viewed this as an unnecessary strain on people’s lives. Especially during a recession, many say it’s not a good idea to impose taxes. The law’s initiators, on the other hand, said, “Foreign capitals all have certain taxes. It’s not going to be a strain on the public, since it’s a small amount.” Another group of people were frustrated that Prime Minister Ch. Saikhanbileg didn’t stick to his promise of not adding or reducing taxes, but this law was being discussed way before Ch.Saikhanbileg’s government was put into place.

Issues related to imposing a capital city tax, centralizing it into the budget and rendering it, were all included in the law. It states that a person paying for services or products within UB’s city limits will have to pay the CCT. “Products” include alcoholic beverage and cigarettes.

Anyone buying products or services from a retailer will be levied with a CCT. Hotels, guesthouses, restaurants and bars will be covered under the CCT. The CCT will be evaluated on the price of services and products sold. If products and services sold or exchanged cost less than the market value, they will also have the CCT applied. The evaluation will be based on up-to-date market values from the associated tax offices.

The amount and percent of the CCT, depending on the density of an area, will be approved on a scale of zero to one percent by the City Council. During the discussion of the law, members who opposed it talked about the tax being zero percent, but they couldn’t get a majority vote. Services other than hospitality, food, and beverages are free of CCT.

Based on the information given by the State Registration Office and information centers, regional tax offices will register businesses responsible for collecting the tax. The tax office is responsible for registering businesses, removing businesses from registration, and receiving tax data. The City Council has to confirm the rules of the tax office.

Businesses should levy the CCT on every product sold and service provided, and state the percentage and amount of money gathered for the CCT on a remittance form. The business should submit the levied taxes to the state before the 10th of the following month, and a report – using the approved form – should be given to the tax office before the 20th of the first month of the next financial quarter.

The business shall not apply other taxes or subsidies when imposing the CCT on a product or service.  The chairman at the state authority concerning tax issues will approve the report forms for imposing the CCT, payments, and rendering methods.

Some members say the CCT will not be a strain on Ulaanbaatarians. We will all see whether it is a strain or not once the law is in effect. So now, we city people have the Capital City Tax accompanying our costs for preparations from fall to winter, and higher electricity and heating bills.

Source: Shuud.mn

Short URL: http://ubpost.mongolnews.mn/?p=15460

Posted by on Jul 24 2015. Filed under Business & Economics, Domestic. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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