STATEMENT

The clause 9.3 of the amended Law on Special Government Funds submitted in conjunction with the Law on the 2020 State Budget states that “A legal entity engaged telecommunications must pay an amount equal to 3% of their net profit into the Public Services Obligation Fund.” We consider this a violation of the PRIVATE PROPERTY of enterprises that are already paying the 25% income tax along with other taxes and fees in accordance with regulations. This clause contradicts the Constitution of Mongolia, is not reflected in the General Law on Taxation, and contradicts the principle stated in the amended Law on Special Government Funds which says “Additional obligations or expenses shall not be levied on a legal entity with existing obligations.”

Net profits are the legal private property and capital of a company and its shareholders recorded in the owner’s equity section of a financial report by subtracting expenses and taxes from the income that company earns through its activities. Clause 16.3 of the Constitution of Mongolia provides for the right to purchase, possess, and own moveable and immoveable property, and property rights are one of the fundamental human rights that must undeniably exist. The government must be responsible for guaranteeing and protecting private property and for stopping any and all attempts to illegally seize property.

Clause 3.1 of the revised version of the General Law of Mongolia on Taxation states that “only parliament has the power to create, levy, change, discount, or exempt taxes,” and also states in cases other than determining special regulations on free zones, or stabilization of taxation in accordance with an investment agreement with the government through a Stabilization Certificate in accordance Clause 3.1.7 of this law as well as the Law on Investment or Law on Crude Oil, when it comes to creating, changing, discounting, exempting, levying, or paying taxes, it is to be implemented only according to the laws on taxation.

In additional, Article 5 of the revised version of the General Law on Taxation divides taxes into the categories of taxes, fees, and payments, and the money to be paid into the Public Services Obligation Fund does not fit into any of those categories. Furthermore, the Public Services Obligation Fund is categorized as a fund whose predominant source of funding is to come from grants, aid, and donations, in accordance with the Law on Special Government Funds. Despite the legal foundation for the fund’s money being reflected as having to be accrued through voluntary donations and aid, we see the new regulation as mandating a legal entity to pay money from its private capital.

The law states that taxes must be collected only in accordance with laws and resolutions on taxes, and seizure of property can only take place through a court decision in cases of a crime committed, to fine for a violation, to uphold criminal or violation accountability, or to compensate for damages done unto others or for not fulfilling obligations of a contract.

Yet, according to the amended version of the Law on Special Government Funds, funds are being raised by taking money in an unconstitutional manner from the net profits of commercial organizations that have already paid their due taxes in accordance with relevant regulations.

In addition, year after year, cases of the fund’s money being used inappropriately have increased. For example, in recent years, around MNT 2 billion was spent on research, training, promotion, books, and manuals, in violation of the law. Relevant organizations have submitted complaints to the Primary Administrative Court of the Capital City regarding this.

A company’s net profit is the LEGAL PROPERTY of its owners, and because we view that ratification of any law that seeks to raise money for Special Government Funds by violating the property of citizens or enterprises is a direct violation of PRIVATE PROPERTY, we are hereby filing a complaint to the proper legal authority.

The Business Council of Mongolia 

Mongolian National Chamber of Commerce and Industry

Government of Mongolia, ADB Promote Private Sector Opportunities

ULAANBAATAR, MONGOLIA (11 September 2019) — The Asian Development Bank (ADB) and the Ministry of Finance of Mongolia co-hosted a private sector opportunities workshop today in Ulaanbaatar, which was attended by over 150 local and foreign private sector companies operating in the country. Mongolia’s Vice Minister of Finance Ms. Bulgantuya Khurelbaatar and ADB’s Deputy Country Director for Mongolia Mr. Declan Magee opened the event.

Representatives from ADB’s private sector teams on infrastructure, agribusiness, health and education, and early-stage ventures presented on relevant case studies, eligibility criteria, typical financing modalities, and terms, and application processes for ADB’s financing. ADB Ventures helps early-stage companies scale technology in Asia and the Pacific for sustainable development impact. ADB discussed potential future collaboration with selected companies during in-depth one-on-one sessions.

“The growth of Mongolia’s private sector is very much aligned with ADB’s new long-term corporate strategy, Strategy 2030, where ADB aims to increase its private sector operations to reach one-third of its operations by 2024,” said Advisor at ADB’s Private Sector Operations Department Ms. Hisaka Kimura. “By actively engaging with Mongolian companies across infrastructure, agribusiness, health care, and education, as well as early-stage ventures, ADB can explore opportunities to support the diversification of Mongolia’s economy.”

Through its private sector operations, ADB catalyzes and funds investments in private and state-sponsored companies across the energy, transport, water, telecom, financial, agribusiness, health care, and education sectors throughout developing Asia. The emphasis is on commercially viable transactions that generate financial returns while promoting environmentally sustainable and inclusive economic growth. In 2018, ADB committed $3.1 billion of its own funds for 32 private sector transactions and mobilized a further $7.4 billion through cofinancing partners.

In addition to ADB’s $2.5 billion sovereign financing for Mongolia to date, ADB has committed $371 million for private sector investments in the energy and financial sectors, including financing to local financial institutions and partner banks through ADB’s Trade Finance Program. ADB’s support for the Sermsang Khushig Khundii Solar Project signed in March 2019 was ADB’s first private sector solar financing in Mongolia and mobilized cofinancing from Leading Asia’s Private Infrastructure Fund (LEAP) into the country’s renewable energy sector.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.

This Memorandum Of Understanding (hereafter referred to as “MOU”) is concluded by the National Development Agency and the Business Council of Mongolia (together hereafter referred as “PARTIES”), in order to stabilize the Mongolian investment policy, improve its competitiveness, improve related legal environment, incorporate the proposals by entrepreneurs in formulation of a public-private partnership policy, and to promote favorable conditions of the local market to investors.

One. General Provision

1.1. The objective of this MOU is to regulate measures to be implemented within the framework of cooperation between the Parties, in relation to improving the investment environment of Mongolia and relevant legal environment, supporting investors and opening up opportunities for them to enter into Mongolian markets.
1.2. The cooperation of the Parties shall be governed by the principles of independence, rule of law, mutual respect and transparency.

Two. Implementation

The following measures shall be taken within the framework of the cooperation between the Parties:
2.1. To study international investment practices and legal regulations, and to exchange views on relevant laws, rules, and procedures for development of necessary documents and renewal of existing documents;
2.2. To provide support and services to protect legitimate rights and interests of investors;
2.3. To cooperate on attracting investment by promoting opportunities to enter into Mongolian markets to foreign investors and to promote Mongolia abroad;
2.4 To exchange information on improving the investment climate and to cooperate in introducing international practices in Mongolia;
2.5 To provide support on translation of tax laws, other applicable laws, regulations and general rules, which apply to investors operating in Mongolia, from Mongolian into English;
2.6 The Business Council of Mongolia to support the development of a Investment Statement Policy and action plan;.
2.7 To Cooperate on the development of investment guidelines that will be used by foreign investors operating in Mongolia;
2.8 To activate and expand the operations of a public-private partnership committee by serving as a coordinator, representative from the private sector;
2.9 To promote ‘Single-point service center’ to foreign investors and member organizations, and to act supportive to.

Three. Miscellaneous

3.1. The MOU shall be executed in two original copies, which are effective upon signing by both parties for 2 years.
3.2. The parties shall make quarterly assessments of the implemented measures within the period of validity of the MOU, and if deemed necessary, amendments may be made upon mutual consensus.
3.3. The MOU may be terminated within two months upon mutual consensus after a party notifying other party in written..
3.4. A proposal for MOU extension or renewal shall be submitted in written at least three months before the expiration of the MOU.
3.5. Any rights, duties and responsibilities, and relations of the parties in relation to actions and functions to take place within the scope of the MOU shall be regulated by an agreement to be established between the parties.

On 1 March 2019, the Business Council of Mongolia (BCM) co-organized with the Ministry of Energy, and the Asian Development Bank (ADB) an international conference on “Northeast Asia Regional Power System Interconnection”. The conference was held under the auspices of the President of Mongolia H.E. KHALTMAA BATTULGA. The following business associations and non-governmental organizations supported the conference, the Asia Super Grid Mongolia Association, the Mongolian Renewables Industries Association, and the Energy Association of Mongolia.

President of Mongolia H.E. Khaltmaa Battulga, President’s Chief of Staff Z.Enkhbold, and BCM Board Members: B.Byambasaikhan, R.Koppa, C.McRae, D.Munkhtushig, E.Orchlon, B.Solongoo, E.Temuulin, Ts.Tumentsogt in attendance

BCM Chairman B.Byambasaikhan and vice-chair of the Energy, Infrastructure and Connectivity Working Group Ts.Tumentsogt welcomed the President to the international conference attended by 300 participants, including the ambassadors and trade representatives from Australia, Belorussia, Bulgaria, Canada, China, Czech Republic, European Union, France, Germany, Hungary, India, Kazakhstan, Laos, Russia, the United Arab Emirates, Kingdom, United States, and Vietnam, representatives of the United Nations, speakers and experts from China, France, Japan, South Korea, and Russia.

President of Mongolia H.E. Khaltmaa Battulga

In his opening remarks(click to read the speech) President Battulga noted “Mongolia not only has a high level of political understanding with our neighboring and regional countries, but we do not have any dispute with any country at the international level. Mongolia has the necessary prerequisites to successfully implement this project.” The President reiterated his call for the creation of the regional organization to implement this progressive initiative.

Yolanda F. Lommen, ADB Country Director

The ADB Country Director Yolanda F. Lommen highlighted the importance of Mongolia’s potential to supply clean and reliable energy to the region. Gurbuz Gonul, Director of the International Renewable Energy Agency (IRENA) presented its report on “New World: the Geopolitics of the Energy Transformation”. The purpose of international conference was to present countries’ perspectives in North East Asia to develop a regional mechanism for the Northeast Asian power system integration (NAPSI).

Gurbuz Gonul, Director, International Renewable Energy Agency

Experts presented their view on a strategy and an action plan roadmap for the NAPSI benefiting from Mongolia’s vast energy resources. During the Panel discussions, country representatives expressed their interest in the realization of the Northeast Asia Super Grid Project. Members from international organizations such as IRENA, United National Economic and Social Commission for the Asia and Pacific, and the Energy Charter remain optimistic of the long-term potential for energy export from Mongolia.

From left: Sungkyu Lee (KEEI), Geng Dan (Country Coordinator from China), Zhao Liujun (SGERI), Shota Ichimura (REI), Kanat Botbaev (Energy Charter), Michael Williamson (UNESCAP), Phillippe Leinhart (EDF)

During the Panel discussions, country representatives expressed their interest in the realization of the Northeast Asia Super Grid Project. Members from international organizations such as IRENA, United National Economic and Social Commission for the Asia and Pacific, and the Energy Charter remain optimistic of the long-term potential for energy export from Mongolia. Research organizations also emphasized that renewable energy exports from Mongolia will be highly profitable for the region and that Mongolia should continue to actively partake in the realization of this initiative.

From left: M.Philippe, Ambassador of France, T.Hristea, Ambassador of EU, X.Haiming, Ambassador of China, G. Gonul, Director of IRENA, D.Vosen, Ambassador of Australia, Y.F.Lommen, Country Director of ADB, and M.P Singh, Ambassador of India in attendance

From right: Chief of Staff of the President Z. Enkhbold, BCM Board Member Ts.Tumentsogt, BCM Chairman B.Byambasaikhan, and G.Gonul, IRENA

2019 оны 5 дугаар сарын 23-ны өдөр Монгол Улсын Засгийн газар, хувийн хэвшил, төрийн бус байгууллагуудын төлөөллүүд, гадаад, дотоодын нэр хүндтэй экспертүүд зэрэг нийт 600 гаруй зочид, төлөөлөгчид оролцсон “ОЛОН УЛСЫН ШИНЭ ЭРЧИМ ХҮЧНИЙ ЧУУЛГАН – 2019” амжилттай болж өнгөрлөө.

Чуулганы үеэр “Говийн Цэвэр Эрчим Хүч Нэгдэл”-ийн Хамтарсан Уриалгад гарын үсэг зурах ёслол болж холбогдох ассоциациуд, холбоод, компаниудын удирдлагууд Монгол Улсын Говийн бүс дахь цэвэр эрчим хүчний баялаг нөөцийг ашиглах, үйлдвэрлэлийг хөгжүүлэх, экспортлох зорилгын дор цугларан энэхүү нэгдэлд элсэж байгаагаа зарлав.

Дэлхий даяар уламжлалт эрчим хүчний нөөцөөс татгалзаж цэвэр эрчим хүчний хэрэглээ рүү шилжиж байгаа эрин үед Монгол Улс цэвэр эрчим хүчний баялаг нөөцөө ашиглан Зүүн Хойд Азийн бүс нутгийн өсөн нэмэгдэж буй эрчим хүчний хэрэгцээг хангах улмаар бүс нутгийн орнуудыг хамарсан олон улсын жишиг, стандартын дагуу цахилгаан эрчим хүч дамжуулах нэгдсэн сүлжээг бий болгох боломжтойг Эрчим Хүчний Яам болон Азийн Хөгжлийн Банкны хамтарсан судалгаагаар тогтоосон. Говийн цэвэр эрчим хүчний нөөцийг ашиглан, бүс нутагтаа экспортлосноор Монгол Улсын эдийн засгийн өсөлт, иргэдийн эрх ашигт эерэг үр дүн авчрахаас гадна дэлхийн дулааралд хамгийн их нөлөө үзүүлж буй нүүрсхүчлийн хийн ялгарлыг бууруулах үйл хэрэгт том ахиц гаргах юм.

Монгол Улсын Ерөнхийлөгч Халтмаагийн Баттулгын 2018 оны 9 дүгээр сард Владивосток хотноо болсон Дорнын Эдийн Засгийн IV Чуулганы үеэр Зүүн Хойд Азийн бүс нутгийн орнуудын эрчим хүчний оргил цагийн ачааллыг хөнгөвчлөх, хамгийн үр ашигтай, хямд өртөг бүхий цахилгаан эрчим хүчээр хангах шийдэл болох Зүүн Хойд Азийн цахилгаан эрчим хүчний нэгдсэн сүлжээний бүс нутгийн зохицуулалтын байгууллага бий болгох санаачилга гаргасныг нэгдэлд элсэн орж буй талууд дэмжихийн сацуу Говийн бүсийн цэвэр хүчийг ашигласнаар Монгол Улсын эрчим хүчний салбарын хөгжил, Монгол Улс болон Зүүн хойд Азийн бүс нутгийн эдийн засаг, дэд бүтцийн хамтын ажиллагааг шинэ, ахисан түвшинд гаргах, Монгол Улсыг цахилгаан эрчим хүч экспортлогч орон болгоход чухал ач холбогдолтойг онцолсон юм.

Дэлгэрэнгүй мэдээллийг дараах хаягаар холбогдож авна уу.

Утас: 976-99107148

Ц-шуудан: This email address is being protected from spambots. You need JavaScript enabled to view it.