- Mongolia is considering a bill to lower the VAT rate to 5 percent.
- The bill was first proposed in 2019 but was not reviewed.
- The bill was reintroduced by new parliament members.
- The proposal follows the Prime Minister’s announcement of tax plans to ease burdens on citizens.
- Currently, citizens pay 10 percent VAT with a 2 percent refund.
- The proposed law would reduce the VAT rate to 5 percent while maintaining the 2 percent refund, resulting in a 3 percent net tax burden.
- Mongolia has 180,000 registered businesses, 81,000 of which are VAT payers.
- There are also 250,000 registered individual entrepreneurs, 50,000 of whom pay VAT.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
