AmCham Daily Newswire

MPP decided not to issue pay cuts for government officials

Summary: After the Parliament’s MPP Caucus meeting, MP D. Khayankhyarvaa and MP L. Oyun-Erdene made an announcement regarding pay cuts for government officials and proposal to increases property taxes. MP D. Khaynkhyarvaa stated that after thorough consideration, the MPP Caucus has decided not to issue pay cuts for the Government’s top officials, but will issue pay cuts for the directors of state-owned companies. The MPP Caucus will further review taxes on imported used spare parts, excise taxes, and property taxes for apartments larger than 150 square meters. Some MPs opposed the idea of creating funds for university students while others supported the monthly stipend of 70,200 MNT for university students, they reached a verdict to create 90 billion MNT fund. After much discussion, the MPP Caucus decided to create a 90 billion MNT fund to be used as a stipend for university students and to offer welfare for 60% of Mongolia’s most impoverished children.

Keywords: taxes, government stability The National Post /page 2/

Kh. Bolorchuluun – ‘Government should not go after its citizens’ pockets'

Summary: Member of Parliament Kh. Bolorchuluun stated that the MPP’s action plan did not include increasing taxes and they promised citizens not to increase taxes prior to the election. However, they are now proposing 8 different types of tax increases. Internationally, the social insurance rate is 10% and it would be incorrect to increase Mongolia’s rate to 25%. Additionally, considering the current economic situation, it would be wrong to issue pay cuts and it would create further economic complications. Kh. Bolorchuluun states that it is right to take austerity measures but it should not be done at the expense of citizens.

Keywords: government stability, tax increase Daily News /page 1,2/

Used vehicle imports decreased by 62%

Summary: There are seventeen automobile distributors in Mongolia who have contracts with major car manufacturers. The Mongolian Automobile Distributors Association reported that, distributors have imported 8,171 vehicles this year, which is a 58% decrease from last year. Of the total imports, 85% of the automobiles are used and 15%, or 1,160, automobiles are new. Compared to last year, the number of imports of new cars increased by 15% and used cars decreased by 62%. As of July 2016, cars imported from Japan make up 85% of all imported cars. Additionally, the cost of imported vehicles is 8 million USD more compared to prices last year. The exchange rate of the Japanese Yen against the MNT rose by 30% since the start of the year.

Keywords: import, automobiles The Official Gazette /page 11/

Plan for self-financing long-term mortgage loans is in place

Summary: During the meeting between the Financial Regulatory Committee (FRC) and the Mongolian Mortgage Corporation, the Executive Director of the Mongolian Mortgage Corporation D. Gantugs stated that this year marks the 3^rd consecutive year that mortgage loans have been given and, based on the latest statistics, 85,000 households have received mortgage loans. During this time, mortgages amounting to 3.8 trillion MNT have been given and since September 2013, the payback rate stands at 99.5%. The Financial Regulatory Committee’s Head of Office T. Jambaajamts claims that a plan for self-financing long-term mortgage loans is in place. Currently, the FRC has transferred real estate loans totaling 2.4 trillion MNT to the market through nine specialized companies. Securities guaranteed by loans are issued by the FRC and Bank of Mongolia and bought by commercial banks. The initial financing for mortgage loans was identified by the Bank of Mongolia and the Government, and the continuation of mortgage loans will be dependent on the availability of the initial financing. The cash flow will be generated from repayments of mortgage loans and will eventually be self-financing.

Keywords: mortgage The National Post /page 3/

Cabinet to discuss tax on exported raw camel wool

Summary: Over the past four years, raw animal materials have made up of 6-7% of total exports, totaling an estimated 310 million USD. Amendments to the Law on Establishing Export Customs and Different Tariffs on Products, introduced to the Parliament on August 24^th aims to exempt all raw animal materials from export taxes and, if approved, will take effect on January 1^st, 2017. Minister of Finance B. Choijilsuren noted that, considering the current situation, export taxes on camel wool should be relieved and reinstated when the industry is more developed. The amendment, which proposes to exempt some exports from being taxed, has been sent to the Budget Standing Committee to prepare for the first forum.

Keywords: export, tax, agriculture www.ikon.mn