Mongolia
passes new investment law to attract foreign investment; scraps
controversial foreign investment law
ULAAN BAATGR, Oct. 03 (Moninfo)
--Today, Mongolian parliament passed new investment law to atract foreign investment. 83 percent of the 76-member Mongolian parliament
members voted for this law. Along with passing of this new investment law,
controversial law “Strategic Entities
Foreign Investment Law (SEFIL) which was passed in May 2012 is scrapped. This
controversial law was designed to restrict foreign investment in firms in
sectors like mining, telecommunication, banking and media to just 49 percent.
According new investment law, four types of taxes for investors which invested more than 15 billion tugrug ( about 9 million dollars) will be stabilized. Tax stabilization period for the investors will increase depending on location and investment made. For example, in 300-500 billion tugrug investment in region around Mongolian capital, the investors will enjoy 10 year tax stabilization period and if distance from central region is further, the tax stabilization period will increase. For same amount of investment in central region, stabilization period will be 11 years and in western region, it is 13 years etc. Mongolia is divided into Ulaanbaatar, central, mountainous region, eastern region, western region.
According new investment law, four types of taxes for investors which invested more than 15 billion tugrug ( about 9 million dollars) will be stabilized. Tax stabilization period for the investors will increase depending on location and investment made. For example, in 300-500 billion tugrug investment in region around Mongolian capital, the investors will enjoy 10 year tax stabilization period and if distance from central region is further, the tax stabilization period will increase. For same amount of investment in central region, stabilization period will be 11 years and in western region, it is 13 years etc. Mongolia is divided into Ulaanbaatar, central, mountainous region, eastern region, western region.
This year Mongolian FDI fell by 41 percent compared to 2012 as Anglo-Australian miner
Rio Tinto developing large gold-copper mine in South Gobi region of Mongolia
announced a halt to the development of an underground mine estimated to hold 80
percent of the mine’s value.
Facing
with deteriorating economic condition and shortage of hard currency, the
Mongolian government is pushing Rio Tinto to resume the underground mine
development and continue its investment in the country. As part of the
measures, Mongolia is also considering supporting gold mining companies.
Enditem.
Source:MonInfo news service
0 comments:
Post a Comment