The State Budget Bill for the fiscal year of 2021 was adopted at the State Great Khural’s plenary session of 13 November 2020 along with its appropriation bills. On 25 November 2020, the President of Mongolia, Battulga, refused 2021 State Budget and Appropriation Bill. However, the approved State Budget for 2021 is unfit for the current circumstances, given that the bill does not eliminate prodigal spending by setting strict criteria for cashflow and investment expenditure, and does not reflect realistic and versatile analysis of the national and global economic conditions, the President views. The Budget Law includes:
- A VAT and customs duty exemption will be effective from 4 December 2020 to 1 July 2021 for the import of all types of rice and vegetable.
- A 10.5% reduced social and health insurance contribution rate will apply from 1 January to 30 June 2021 for employers and employees.
- the Budget Law includes the extension to 31 December 2020 of the corporate income tax exemption for companies with taxable income less than MNT 1.5 billion in the previous tax year.
