During the first eleven months of 2018, Mongolia’s tax revenue reached MNT 7.4 trillion, an increase of MNT 1.7 trillion or 30.8 percent compared to the same period of the previous year. This growth was mainly accounted for by a substantial MNT 483.6 billion or 32.7 percent increase in value added tax; MNT 437.2 billion or 30.5 percent in income tax; MNT 264.3 billion or 22.9 percent in social security income; MNT 230.5 billion or 50.1 percent in excise taxes; MNT 160.8 billion or 35.3 percent in revenue of foreign activities and MNT 134.9 billion or 25.5 percent in other taxes.
On 2 February, the Mongolian Parliament approved the Law on Personal Income Taxes. Accordingly, the personal income tax increased from 10 to 25 percent in four brackets starting from 1 January 2018. Tobacco and alcohol taxes were gradually increased by 10% in 2018. Currently, there are 900,000 registered taxpayers in Mongolia, 95 percent of which will be paying less than 10 percent in income tax while the remaining five percent will be paying more than 10 percent.