Over the past 6 years, Mongolia’s tax debt has risen 5.6 times, reaching ₮6.5 trillion, according to reports presented by the Democratic Party (DP) group in Parliament.

 🤕 Mounting Tax Debt

This year, 321,000 citizens and enterprises are in arrears, with total tax debt, interest, and penalties accumulating to ₮6.5 trillion. In practical terms, this means that among any 2 enterprises in the country, one is likely to have outstanding tax debt. By comparison, last year, 50,000 enterprises had tax arrears, this year, that number has risen to 70,000.

• 🤔 Factors Behind the Growth: The National Audit Office has attributed a sharp rise in tax debt in recent years to the economic impact of COVID-19, noting that in 2022 alone, tax arrears reached ₮3.3 trillion due to the pandemic.

🗣️ Discussion of Tax Amnesty

The DP emphasized the need to consider a tax amnesty, highlighting that mounting tax debt has become a barrier to business activity. Tax amnesties are discussed internationally roughly every 10 years, and a draft law is currently being prepared. However, the DP noted that any amnesty must be structured carefully so as not to disadvantage citizens or enterprises who have consistently paid their taxes on time.

At this stage, it remains unclear when the overall tax burden will ease, leaving businesses and citizens waiting for concrete measures. The DP continues to advocate for a one-time amnesty as a potential solution to reduce arrears and support economic activity.