A MEETING ON VALUE ADDED TAX’S ISSUES WAS ORGANIZED WITH THE MINISTRY OF FINANCE AND MONGOLIAN TAX ADMINISTRATION
Today, the managers of the Ministry of Food, Agriculture and Light Industry of Mongolia, the Mongolian Wool and Cashmere Association, Gobi, Cashmere Holding, Khanbogd Cashmere, Sor Cashmere, the Head of the Tax policy department of the Ministry of Finance Mr. Telmuun.B, the Head of the Tax management and international tax department of the Mongolian Tax Administration Mr.Tsogtjargal.G, the Head of the VAT department Mrs. Munkhtuul.D held a meeting to exchange opinions on the difficulties arising in the cashmere industry in the implementation of Article 14.1.4 of the Law of Value Added Tax.
According to the repeated meetings of the Mongolian Wool and Cashmere Association with the Ministry of Finance and the Mongolian Tax Administration, last year the factories were given the opportunity to submit VAT reports, yet until today, the implementation of the law has not been met, the problem has not been resolved, and there are still significant difficulties in purchasing cashmere raw materials.
In order to solve this problem fully, the Executive Director of the Mongolian Wool and Cashmere Association Mrs.Altantsetseg.D presented the proposal to the Parliament and the Government to improve the coordination of the Law of Taxes, the Law of Personal Income Tax and the Law of VAT in connection with the implementation of the Law on Value Added Tax.
During the meeting, the companies said that the intermediary companies do not accurately report their sales income, not printing e-bill, not paying any taxes, and only national companies are burdened with taxes, when herders and middlemen are not interested in giving their cashmere, if the companies get their raw materials from farmers and cooperatives and type their e-bill, they will be able to make deductions without requiring verification. Also, when trade at the Mongolian Commodity Exchange, possible solutions were discussed by making amendments to the law, such as trading participants must type e-bill to trade.
In addition, the participants of the meeting discussed the cooperation between the government, sector’s associations, and the private sector in managing unequal business relation and solving problems in the business environment.
September 14, 2023
