MONGOLIA TO EASE GOLD TAXATION

Ulaanbaatar /MONTSAME/ Easing tax on gold exploration will help increase the nation’s gold and foreign currency reserves by USD 1.7-2 billion, specialists highlight. The above estimation has been foreseen in anticipation of approval of draft law on transparency in gold trade at the parliamentary session, presuming that a lower tax of 2.5 percent will boost the gold selling of the miners to Mongolbank. In five year’s time, the foreign currency reserve will reach USD 8.5-10 billion, the specialists say, noting the fact that in 2005, when the tax on gold exploration was low as 2.5 percent, the gold production saw the highest of 24 tons a year. The draft bill estimates gold production of 9.9 tons, and gold export of 4 tons at the nation’s largest project of Oyu tolgoi when it agrees at twice lower gold royalties for selling their gold to Mongolbank. The draft bill also imposes more strict punishments for cases of illegal trading, exportation, concealing of gold and tax evasion.