In the 2018 state budget, the Mongolian government is expecting tax  revenue to increase by 607 billion MNT or 10.7 percent compared to the total expected revenue in 2017.

The main factors for the increase will be increases in income tax, the social insurance fee, and the revenue from the value added tax (VAT). In 2017, seven types of taxes were increased as part of the agreement with the International Monetary Fund (IMF) to enroll into the extended fund facility.

Tobacco and alcohol taxes are to gradually increase by 10% in 2018, 5% in 2019 and 5% in 2020. Furthermore, personal income tax rate will be increased by between 10-25 percent in January, 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.