MP D.Baldan-Ochir (MPRP) feels that the tax policy needs
change, so that personal income tax is made to contribute more to the tax
budget than at present. He rules out tinkering with the rates of corporate
income tax, as that might discourage badly needed fresh investment, but he
thinks the present situation, where only 5% of the State budget comes from
personal income tax, is unsustainable. With corporate income tax expected to
provide 90% of the budget, tax inspectors focus on companies and there are
frequent cases of unnecessary litigation.

Baldan-Ochir says the secret of development of countries
like those in Europe, the USA, and Japan is their collection of personal income
tax. Mongolian citizens must understand that paying tax is not paying any sort
of penalty and is also not something to be avoided. There can be no social
development without increased tax revenue and everybody who pays some tax
contributes to this development. He listed four “justifications” for his demand
for bringing more people under the personal income tax net: It will eliminate
the need for distribution of social welfare, establish social justice, curb
corruption, and give citizens value for their money.