From 2017, the SAM Project of the Swiss Agency for Development and Cooperation started to supporting and collaborating with Journalists for Human Rights club.
During this meeting, D.Altansukh, specialist of Markets Department of the Bank of Mongolia, gave information about "Bank of Mongolia’s involvement in micro-pit mining on gold supply”, D.Bayaraa from General Taxation Authority presented about "The concept of tax and its significance”, and B.Bekhbat, Head of the Precious Metals Assay Inspection Department, informed about "Intervention of precious metals assay in micro-mined gold supply”.
Since 2014 when the royalty of minerals decreased to 2.5 percent according to amendments on Mongolian Minerals Law, gold purchase by Bank of Mongolia increased drastically. For instance, total 18 tons of gold was purchased in 2016 and 11 tons thereof was sold by entities where the rest 7.2 tons was sold by individuals.
Latest changes are also factors of increase in gold supply. For example, Bank of Mongolia deducts 2.5 percent of the gold sold by individuals and entities and tax rate imposed on total revenue from gold is decreased to 5 percent. Further, it does not require any other documents except for national ID for individuals and state registration certificate for entities to sell gold to the Bank of Mongolia. Moreover, the Bank of Mongolia buys gold at the London Stock Exchange’s price of that day.
The Bank of Mongolia and the Precious Metals Assay Inspection Department have the plan to establish local gold purchase spots in provinces of Mongolia. According to D.Altansukh of the Bank of Mongolia, local gold purchase spots can lead to more fair and efficient services of Bank of Mongolia for the citizens and such spots enable them to sell their gold at world market price.
D.Bayaraa, Head of the Minerals and International Tax Division of the General Taxation Authority of Mongolia, talked about the individual and corporate income tax rates and introduced about the Mongolian state tax revenues, its significance and tax exemptions. Further, Mr. Bayaraa answered tax related questions asked by participants.