At the Government meeting on Wednesday members discussed a draft law on export taxes that was submitted by MPs P.Altangerel and N.Ganbyamba.

The members did not approve further discussion of the draft law because it would have levied a five percent tax on coal and iron ore exports, based on the estimated sale price. Members pointed out that companies already pay an income tax, a value added tax, a tax for exploiting mineral resources, and a royalty tax.

Members said the export tax would make overall taxes too high on companies, which could stifle development in the coal and iron ore sectors, since mining is one of the country’s leading economic engines. They said it could also stifle investment in the mining sector.

Members decided that the draft law should be discussed by the Customs Tariff Council, which should solicit the opinions of experts on the matter.