The Ulaanbaatar city administration has passed a decree to increase the annual road tax by five times from 1 January, 2020. This has come as a result of the increase in the number of vehicles; in 2018 it reached 850 thousand in the capital and traffic congestion increased.

According to new the ruling, owners of vehicles in Ulaanbaatar city are required to pay road tax from MNT 100 thousand to MNT 250 thousand depending on the type of vehicle each year, which approximately equals to MNT 8300 month. Previously, it was MNT 20 thousand.

From 2016-18, road tax revenue collected averaged MNT 11.3 billion each year. This is an important part of the Ulaanbaatar city budget. Around 30-40 percent of the total budget of the capital city is spent on repairs and maintenance of roads. However, this is not sufficient to cover all the roads in Ulaanbaatar, with are being hammered daily by over 500 thousand vehicles.

In addition to the cost for road maintenance, the collected fees will be expended for other pressing transportation issues of Ulaanbaatar city, such as for increasing number of school buses, road widening to name but a few.