In correlation with COVID-19 local transmission in Mongolia, strict lockdown measures are being implemented until December 1. During the timeframe, movement of traffic and pedestrians are allowed from 7 to 10 am in the morning and 5 to 8 pm in the evening, with restrictions for the rest of the day. Furthermore, the operations of all entities except for those that run 11 types of operations considered essential by the Government have been suspended, with entities that run the aforementioned 11 types of operations being obliged to have no more than 15 percent of their workforce present at their workplace during the period. Citizens are urged to stay home and only leave home if necessary, which includes collecting groceries or if they are in need of medical assistance.

At a regular meeting of the Cabinet on November 18, a resolution with 23 measures to be taken in prevention of COVID-19 pandemic was approved

1.With an aim to support the livelihood of the citizens, Minister of Labor and Social Welfare A.Ariunzaya and Minister of Finance Ch.Khurelbaatar were instructed to provide a monthly ‘Child Allowance’ of MNT 100 thousand to children aged 0-18 and other social welfare allowances and services to citizens quickly and without interruption. This measure will be in effect until July 1, 2021.

2.To develop a draft law to not impose penalty on business entities and organizations aside from state and local owned and partly state-owned legal entities that have not paid their employees’ social insurance contributions within the legal deadline. The measure should be valid between November 1, 2020 and July 1, 2021.

3.The Minister of Finance was instructed to draft a law on exemptions from penalties for late payment or penalties for non-payment of taxes in due time that filed with the local tax office according to the law until July 1, 2021.

4.Until July 1, 2021, a taxpayer who rents out a building or area for the purpose of shopping center, factory, service, private school, kindergarten and childcare service shall be subject to tax reduction, if he or she decreases the rental rate

5. Minister of Food, Agriculture and Light Industry Z.Mendsaikhan and Minister of Finance Ch.Khurelbaatar were instructed to draft laws on exemption of customs tax and VAT on imported rice, vegetable oil, hay, forage, fodder seeds, wheat, wheat germ and oilseeds, as well as draft law on VAT exemption on vegetable oil, hay, forage and rice that processed and sold in Mongolia.

6. Deputy Prime Minister Ya.Sodbaatar was instructed to establish a joint task force of companies working in the food sector and take measures to ensure the normal production, packaging, delivery, distribution and sale of food products based on the meeting of requirements of infection control issued by the Ministry of Health.

7. The Governor of the Bank of Mongolia and the Chairman of the Financial Regulatory Commission were given directions to take measures for deferring repayment of mortgage loan principal and interest until July 1, 2020, regarding the borrower's request, and to extend the loan agreement term without increasing the amount of the remaining payment.

8. In resolving the request to defer repayments of loan principal and interest to be paid to nonbank financial institutions and saving and credit cooperatives, it was instructed to defer the repayments until July 1 based on the solvency of the borrowers without putting additional pressure, including penalties for late repayment or increased interest.

9. Minister of Mining and Heavy Industry G.Yondon was instructed to shift companies exporting minerals and petroleum products to special infection control regime, protect all workers from the pandemic, and create safe working conditions.

10. The Minister of Foreign Affairs, the Minister of Road and Transport Development and the Minister of Mining and Heavy Industry were instructed to intensify the implementation of the “Green Gateway” temporary regulation being implemented in the extent of the Mongolia-China border checkpoints and to resolve the issue of continuing mineral and oil exports without halt through diplomatic channels.

11. The Chairman of the State Emergency Commission, the Minister of Finance, the Minister of Road and Transport Development and the Governors of the aimags were instructed to ensure border checkpoints operate at full capacity under strict infection control regime, get the drivers transporting minerals from Tavan Tolgoi, Nariin Sukhait and Oyu Tolgoi deposits through Gashuunsukhait-Shiveelhuren border checkpoint fully tested for the virus and to declare this checkpoint as a “Green Zone” in order to ensure the normal export of oil.

12. The Deputy Prime Minister and relevant officials were instructed to take measures to disinfect all types of postal items arriving in Mongolia.

13. The Minister of Health and the Director General of the Customs General Administration were instructed to promote the law passed by the Parliament in August on the customs tax and VAT exemption for imported COVID-19 test kits, medical devices, equipment, disinfectants and face masks which will be valid until the end of 2021.

14. The Director of the General Department of Taxation was instructed to publicize that the taxpayer should deduct the loss incurred in the tax return for 2020 for four consecutive tax years in accordance with the procedure set forth in Article 19 of the Corporate Income Tax Law.

15. The relevant officials were instructed to intensify the digital transition in the tax and customs services in order to avoid face to face meeting and gathering people.

16. The Minister of Finance was instructed to deduct tax arrears from time to time at the request of the taxpayer in the event that the taxpayer has receivables for goods, works and services from the state and local budgets.

17. The Minister of Food, Agriculture and Light Industry Z.Mendsaikhan was instructed to direct the activities of the Loan Guarantee Fund revitalize the businesses in accordance with the law and to take measures to intensify the activities of the Fund.

18. All general budget governors have been instructed to promptly pay for the provision of services and supplies to budgetary and governmental organizations and state and state-owned enterprises.

19. In order to overcome the economic difficulties and support the continuous operation of domestic production, all general budget governors are obliged to purchase domestic goods in accordance with Articles 10 and 11 of the Law on Procurement of Goods and Services with State and Local Funds.

20. In order to provide equal opportunities for companies to participate in tenders, all general budget governors have been instructed to extend the deadline for all types of tenders to be received during the effective period of lockdown until December 4, 2020.

21. In connection with the shift to heightened period of readiness, the Minister of Finance was instructed to take measures to set financial priorities for expenditures other than salaries and pensions and to continue the budget of budget governors in austerity mode in connection with the revenue collection.

22. Each member of the Government was instructed to study and develop a proposal on economic, budgetary and financial measures to ensure the normal operation of production, services and business entities, present it to the State Emergency Commission meeting and make an urgent decision on the spot.

23. The Deputy Prime Minister, the Minister of Culture and other corresponding officials were instructed to maintain and promote the infection control regime and recommendations of the Ministry of Health, create TV programs and contents that promotes national unity and organize public awareness campaigns regarding this resolution through the media.

Following the cabinet meeting, Minister of Finance Ch.Khurelbaatar delivered a media presentation on the spending report of foreign loans and assistance received by the government.

Afterwards, he informed that Mongolia has already applied to purchase COVID-19 vaccine with USD 50.6 million funding from the World Bank and has joined the Covax Facility, a global initiative that brings together governments and manufacturers to ensure eventual COVID-19 vaccines reach those in greatest need. “Therefore, we believe that Mongolia has a higher chance of gaining access to coronavirus vaccine when available,” said the Minister of Finance. 

Today, Mongolia has reported 37 new cases of COVID-19 after testing 3625 samples at laboratories nationwide since 5 pm yesterday, November 19.

Therefore, the total confirmed COVID-19 in the country has reached 555, of which 120 are locally transmitted.