USAID SUPPORTS MONGOLIAN TAX ADMINISTRATION’S NEW TAX E-PAYMENT SYSTEM

Ulaanbaatar /MONTSAME/ With support from the USAID-funded Business Plus Initiative Project (BPI), the General Department of Taxation (GDT) launches its new E-Payment System on Friday. The GDT upgraded and launched its new e-tax filing system in early 2014, which now reaches more than 70 percent of taxpayers. In order to facilitate payment of taxes, USAID supported the GDT in developing an E-payment System with two user-friendly options. Under the first option, taxpayers can visit the GDT e-filing website and make payments using a debit or credit card and with the second option, taxpayers can pay taxes directly from their personal banking system. Golomt, Khan Bank, and State Bank partnered with the GDT to pilot the latter option under this initiative, providing e-payment access through banks to more than 80% of the taxpayer base. GDT plans to expand this service via all commercial banks in Mongolia. Before E-payment, taxpayers needed to make tax payments at their bank and then visit the GDT office, where a tax inspector would enter payment information to the system based on the bank payment slip. The new E-payment options will make paying taxes easier, cheaper, safer and faster by connecting GDT and banks electronically with just a few clicks, eliminating physical visits to banks and the tax office. During the launch event, the GDT and commercial banks will demonstrate and explain the new e-payment system to taxpayers. “Improved information technology support is an important enabler for the implementation of tax administration reforms and for the enhanced performance of the GDT. We also recognize that partnerships with leading commercial banks are key to accelerating the migration of our taxpayers to a ‘cashless society’ throughout Mongolia,” said T. Batmagnai, Commissioner of the GDT. Commenting on this partnership, Golomt’s Chief Executive Officer, G. Ganbold said: “This new e-payment system demonstrates Golomt’s vision which is to provide our customers with convenient, accessible and reliable financial services as part of our commitment to contribute to the economic development of Mongolia,” E-payment is part of USAID’s broader collaboration through technical assistance, capacity-building for more than 500 tax officers and 3,000 taxpayerstax preparers, and public awareness to support the Mongolian tax administration in modernizing and introducing compliance simplification measures through tax e-filing and e-payment, aimed at improving the business climate and enhancing private sector development and growth. The introduction of electronic filing and e-payment is expected to significantly reduce the number of payments and the time to comply with tax obligations as measured by the World Bank Doing Business Report. Since 1991, USAID has provided over $230 million worth of technical and humanitarian assistance in support of Mongolia’s democratic, economic and social transition.