Mongolians have been complaining about bailout-related income cuts which come into effect on 1 January 2018. A total of three taxes will be increased in accordance with an International Monetary Fund agreement. The biggest and the most controversial tax increase will be personal income tax. There has been opposition to parliament’s approval of a budget deficit of MNT 2.4 trillion, whilst projecting to increase taxes. On 13 April, during its spring session, the Mongolian Parliament adopted amendments to certain tax rates.

Currently, there are 900,000 registered taxpayers in Mongolia, 92 percent of whom will be paying less than 10 percent in income tax while the remaining eight percent will be paying more than 10 percent. In the 2018 state budget, the Mongolian government is expecting tax revenue to increase by MNT 51.5 billion.