Mongolia’s hidden market counts for 30% GDP

Aug 4 • Economy • 1337 Views • 1 Comment on Mongolia’s hidden market counts for 30% GDP

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Mongolia is to bring new system to calculate the economy’s output, GDP. According to the international organizations the unregistered economy output known as the black or hidden market is 30%. This means that 30% of Gross Domestic Product is unregistered and unrecorded. Some economists calculated that the hidden market in Mongolia is over 50% whereas the report made from the National Statistics Committee reveals 10-12%.

O.Tengis, Director of Law and Legislation department of the General taxation office says that statistics reveals different results and we can’t argue which one is wrong or right. The director noted the importance of the hidden market and they are currently planning to implement new project to reveal the hidden markets by giving tax bonuses or lotteries to the sellers, buyers and tax payers.
Large amount of selling and trading are left unregistered. This way they can reveal the hidden markets and increase the tax revenues. This system is successfully used in South Korea and Taiwan. To make this system successful both traders and tax officers have to cooperate with this. Ministry of Finance sent request to the Government to implement this project. First draft law is ready to be presented says the Director. Ministry of Finance is hoping to reveal the better calculated amount GDP of Mongolia.

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One Response to Mongolia’s hidden market counts for 30% GDP

  1. N.K.Garg says:

    Lower the sales tax/VAT to not more than 10%. Confiscate all goods found without bill unless they pay tax calculated at fair value to be determined by experts with option to buy the goods at 20% less.

    India is facing similiar problems but our corrupt politicians do not allow stricter steps to save their skin. Everybody has to maintain bill printing machine and display prices. Charge tax even on the smallest coin value of sale. No commodities exempted. Usa, Europe, middle east and other developed countries have this system. Tourist allowed tax refund if they prove the goods have left the country.

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