🙄 Tax Amnesty on the Table

Ulaanbaatar’s Air Cleanup Push Faces Hard Reality

Author

Khulan MendsaiKhan
December 01, 2025 • Estimated Reading Time: 10 minutes

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Hello December! Today’s the coldest of the week: -21°C by day, -28°C at night. Winter is serious business in Mongolia. Bundle up and stay warm! 🥶 

What’s inside today’s edition…

  • 🔹 New CEO of Oyu Tolgoi

  • 🌱 UB city’s effort to push greener solutions

  • 💰 Discussion of Tax Amnesty

No Time to Waste. Let’s Get Started! 🦘

MARKET

MNG: President U. Khurelsukh to make an official visit to Italy and the Vatican from December 1–4.

EBRD: The European Bank for Reconstruction and Development has imposed a 4.5-year debarment on  Max Group’s 2 entities, Max Impex LLC and Khan Altai Resource LLC, along with 22 affiliated companies, following a finding of corrupt practices in an EBRD-financed project.

GOV: The Prime Minister has dismissed the CEOs of 3 state-owned enterprises, MIAT, Thermal Power Plant-4, and the Information and Communication Network, citing inefficient procurement, significant asset wastage, and unnecessary staffing increases.

OT: S.Munkhsukh has been appointed as the CEO of Oyu Tolgoi LLC.

🤨 Ulaanbaatar’s Air Cleanup Push Faces Hard Reality

The City Council reviewed Ulaanbaatar’s ongoing efforts to curb air pollution, highlighting progress in household insulation, heating transitions, and gas-safety measures.

🏌️‍♂️ Push to Cleaner Energy

The capital is accelerating its plan to shift households from raw coal to gas, electricity, and renewable energy.

  • 5,000 households in Bayangol and Chingeltei are being insulated this year, with work now 93% complete.

  • By 2026, more than 50,000 households are planned to be insulated and connected to cleaner heating systems.

  • Housing and land-acquisition programs in ger districts continue in parallel.

  • Gas heating devices are expected to arrive early next year, with the first households scheduled to switch to gas from January 2026.

🛜 Shift to 100% Semi-Coke Fuel

Despite long-term clean-energy goals, the city confirmed that 170,000+ households will rely entirely on semi-coke fuel this winter. Distribution points switched to 100% semi-coke four days ago, and households have roughly 2 weeks of other fuel types left.

🥶 Air Quality: Some Gains, New Concerns

According to city officials, average air quality between November 1–23 showed SO₂ down 43%, PM2.5 down 8%, and PM10 down 19% from last year. However, NO₂ levels increased, largely due to emissions from Ulaanbaatar’s 600,000+ vehicles on the road each day.

  • The city is partnering with JICA to analyze pollution sources, including emissions around TPP-3. A detailed air-quality assessment will be released in mid-December.

Yet despite the reported improvements, carbon monoxide incidents remain high. The National Center for Public Health has logged more than 1,267 CO-related calls since the start of 2025, and the National Institute of Forensic Science confirms 110 deaths so far this year. Many Ulaanbaatar residents also say they have seen little real improvement in daily air quality, raising questions about whether current measures are delivering meaningful change.

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ECONOMY & BUSINESS

  • Asian Battery Metals Delivers Impressive Drilling Results at Maikhan Uul. (DiscoveryAlert)

  • Mongolia Hopes to Get on Track to Economic Prosperity with New Rail Links. (SCMP)

  • Bank of Mongolia President B. Lkhagvasuren Receives “Economic Catalyst” Award. (BOM)

  • Mongolia’s Mega-Airport Upgrade: Turning Ulaanbaatar into a Silk Road Sky Hub. (TravelRadar)

  • Mongolia’s Khan Bank Sets the Pace for Local Green Finance. (EuroMoney)

  • Korea United Pharm Launches Clavixin Duo Capsule in Mongolia with Cardiology Seminar. (KoreaBioMed)

POLITICS

CULTURE & LIFESTYLE

  • How Enkh-Orgil Baatarkhuu Powered Himself To A World Title Shot At ONE Fight Night 38. (ONEFC)

  • At COP30, Mongolia One of the Only Countries Without a Pavilion. (EarthJournalism)

  • ⁠Sentinel of the Herds: Meet the Mongolian Shepherd Dog. (Boreales)

🙄 Tax Amnesty on the Table

Over the past 6 years, Mongolia’s tax debt has risen 5.6 times, reaching ₮6.5 trillion, according to reports presented by the Democratic Party (DP) group in Parliament.

🤕 Mounting Tax Debt

This year, 321,000 citizens and enterprises are in arrears, with total tax debt, interest, and penalties accumulating to ₮6.5 trillion. In practical terms, this means that among any 2 enterprises in the country, one is likely to have outstanding tax debt. By comparison, last year, 50,000 enterprises had tax arrears, this year, that number has risen to 70,000.

  • 🤔 Factors Behind the Growth: The National Audit Office has attributed a sharp rise in tax debt in recent years to the economic impact of COVID-19, noting that in 2022 alone, tax arrears reached ₮3.3 trillion due to the pandemic.

🗣️ Discussion of Tax Amnesty

The DP emphasized the need to consider a tax amnesty, highlighting that mounting tax debt has become a barrier to business activity. Tax amnesties are discussed internationally roughly every 10 years, and a draft law is currently being prepared. However, the DP noted that any amnesty must be structured carefully so as not to disadvantage citizens or enterprises who have consistently paid their taxes on time.

At this stage, it remains unclear when the overall tax burden will ease, leaving businesses and citizens waiting for concrete measures. The DP continues to advocate for a one-time amnesty as a potential solution to reduce arrears and support economic activity.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.