Overview
- Parliament finalized and approved the comprehensive tax package on Friday, June 26, adopting measures that leave 20% of incoming funds in previously frozen accounts, cap late‑payment penalties at 50 percent, raise the VAT registration threshold to 400 million MNT, and change PIT/AOA rules to ease burdens on small businesses.
- An urgent Oil Law amendment to resolve legacy product‑sharing contract disputes remains under active parliamentary consideration after the government said large tax, social‑insurance and audit claims—about 703.3 billion MNT against Petrochina Daqin Tamsag and about 23.8 billion MNT against Donshen—have depressed investment and production.
- The government is fast‑tracking social‑insurance changes that would raise pension ages, lengthen the benefit‑calculation period to a longer averaging window, and narrow special provisions for hazardous work; unions held press events saying the proposals would weaken protections for miners, emergency responders and other high‑risk workers.
- Parliamentary debate has turned political over resource revenue rules after MP N. Altankhuug accused officials, naming G. Damdinnyam, of proposing a threefold cut to the mining royalty (AMNAT), an idea critics say would reduce Mongolia’s share of rising copper revenues.
- Lawmakers are also weighing tobacco excise and control reforms that would set a 30 percent excise on most tobacco, convert a prior 20 percent customs tariff on nasal tobacco into an excise, and ban flavors and odors for e‑cigarettes—changes that split MPs between youth‑protection advocates and those warning of restricted adult harm‑reduction choices and illicit trade risks.