Ulaanbaatar, August 26, 2025 /MONTSAME/. Prime Minister of Mongolia, Zandanshatar Gombojav, addressed youth at Ulaanbaatar Park, delivering a speech titled “New Confidence-Innovation” in which the Premier emphasized tax reform and Mongolia’s digital transition.

Earlier, a total of 190,000 citizens participated in the public vote on Mongolia’s 2026 draft budget, with 50 percent of respondents aged between 18 and 35. The Prime Minister highlighted that young people also demonstrated strong engagement in the VAT survey conducted through the “DParliament” electronic system.

In response to questions from young citizens, PM stated that the proposed tax package includes improvements to the progressive tax system on salary income, the integration of operating income into the same framework, and the introduction of tiered VAT discounts based on purchase amounts. The Premier further emphasized that the Government will support wealth creators, producers, and employers by gradually increasing VAT refunds and reforming the current system, ensuring that those who pay taxes are rewarded, rather than disadvantaged.

The tax service will also offer advisory support and implement risk prevention measures. It will introduce tax relief aimed at protecting the income of citizens and households, promoting employment, and easing the tax burden on low and middle-income individuals and enterprises. Additionally, it will foster an environment that enables businesses to operate sustainably, generate savings, and scale up operations.

Youth have voiced strong criticism of excessive government spending, the misuse of budget funds on unnecessary projects and programs, and inefficient resource allocation. Many conveyed that they are not opposed to paying taxes, but are frustrated by the lack of transparency regarding how their contributions are being utilized.

PM announced that a public opinion survey and open discussion will be conducted when the budget draft, developed with input from citizens, is presented to Parliament. The budget approval and allocation process will now be open and transparent. Emphasizing a shift from bureaucratic control to public oversight, the Government is developing a digital system that will clearly display how and where taxpayers’ money is spent, broken down by aimag, city, soum, district, bag, and khoroo. The program is set to launch soon, with a call for young people to participate by casting their vote.

Young people urged the Prime Minister to support reforms in the information technology sector, promote start-ups, and establish a tax-free zone and business-friendly environment. The Premier expressed his appreciation for the opportunity to engage with youth ahead of the state budget discussions and the opening of the parliamentary session. He emphasized that the feedback received during the dialogue is a valuable contribution to shaping effective tax reforms.  

Prime Minister Zandanshatar noted that an intelligent, energetic, and open-minded generation of youth will be the driving force behind a new Mongolia, highlighting that the time has come for the country to transition from a coal-based economy to a knowledge-driven economy, reported the Media and Public Relations Department of the Government of Mongolia.