Several days ago, the Mongolian Trade Unions called for a nationwide demonstration against the income tax increase and the raising of the pension age. Earlier today  (12 January), over 3000 people demonstrated outside the State Palace on Sukhbaatar square. Previously, nearly 15 thousand members of the Mongolian Trade Union had been expected to participate in the demonstration. Kh.Amgalanbaatar, president of the Mongolian Trade Union said they are determined to protect  the interests of everyone.

Parliament has approved an increase in the personal income tax rate from a flat 10-percent rate to a progressive system with rates ranging from 10 percent to 25 percent, and a new 20-percent non-residents’ rate applied to Mongolian source income. The law was approved in April, 2017 and came to effect in 1 January, 2018.

The Mongolian Trade Union has been holding trilateral negotiations with the government over changes of personal income rates and pension age since the IMF programme began. However, they were unable to reach a compromise.