Law on price increase tax on some products and the 68% tax law were discussed on last Friday. The discussion continued throughout the day and the draft laws was supported and will go through the next session of Standing Committee on budget. 10 MPs were voted against as they think that this law should not be discussed by the SGK. MPs N.Batbayar, J.Batsuuri, B.Bat-Erdene, D.Gankhuyag, Ts.Davaasuren, Kh,Narankhuu, D.Odbayar, Sh.Saikhansambuu, Ts.Shinebayar, Z.Enkhbold were voted against. Some MPs wanted to reduce the 68% tax by some amount instead abolishing it. Examples were 34%.
The windfall profit tax was approved on May 12, 2006 to collect funds for building development factories to produce the final products domestically. The windfall profit tax generated 962.3 billion MNT to this date where 901 billion MNT was generated from price increase of copper and 61.3 billion MNT from price increase on gold. 864 billion MNT of these amounts were generated by Erdenet alone. The arguments are the children’s money, which is funded by the windfall profit tax. S.Bayartsogt, Minister for Finance explains that 546.5 billion MNT can be generated from profit tax on Erdenet factory and they can be able to make up the rest of the amount from other types of taxes. Abolishment of the windfall profit tax is not only aimed for the OT project but it is also a policy to ease Erdenet from tax pressure explains the working group of the Government.
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