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Ulaanbatarians to pay one percent city tax starting on October 1

By B.DULGUUN

The City Council approved a one percent city tax yesterday, after a controversial five-hour debate between the Mongolian People’s Party and Democratic Party groups.
The 29th regular meeting of the City Council began with 45 members at 10:00 a.m. at Khangarid Palace. During the meeting, the MPP group in the City Council expressed that it was better to set a lower tax rate, as Mongolia’s economy isn’t doing well. Some MPP members proposed setting the tax rate at zero percent while others proposed 0.5 percent.
“We believe it is right to set a capital city tax. However, the price of food and consumer goods has increased by 30 percent. Considering this situation, we have to discuss this issue carefully. We ask Ulaanbaatar Mayor E.Bat-Uul to be flexible when determining the tax rate. Particularly, the city tax must be determined between zero and one percent, according to the Capital City Law. We don’t approve of imposing the highest rate of tax. Our party proposes keeping the city tax rate at zero percent until the economy and people’s purchasing power improves,” stated MPP representatives.
The Democratic Party group in the City Council supported the decision to have a one percent tax rate. “Every person living in capital cities around the world pays a certain amount of tax. Our party supports the proposal to determine a one percent of tax rate in the capital, which is also consistent with global standards. Specifically, charging a one percent tax on people purchasing alcoholic beverages and tobacco, or receiving services from restaurants, bars, cafes, and other venues is the correct system,” said DP representatives.
At the end of the meeting, a poll was conducted and the majority of the 45 representatives in the hall supported the proposal to set the city tax rate at one percent. Anyone receiving service from restaurants, cafes, pubs, and other venues in Ulaanbaatar, or purchasing alcoholic beverages or tobacco will be required to pay a one percent tax on their purchase starting from October 1.
The MPP group left the hall discontented after hearing the results of the vote. One member said, “During this economically difficult time, [MPP] proposed to have a zero percent city tax rate. It’s unfortunate that people are grouping to take advantage of this opportunity and making a decision to frisk the pockets of residents.”

 

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