Government to shed light on the Mongolian shadow economy

It is said that the shadow economy makes up about 30% of total economy of Mongolia.

For instance, there are 7400 sole traders operate at the local markets called Narmon, Uguumur and Narantuul in Bayan-Zurkh district, Ulaanbaatar. Of those, 2900 sole traders are taxpayers and  which is equal to 40% of total sole traders at these markets. Hence, remaining 4500 people who work at the markets are to be considered as a part of the shadow economy.  

Even though 90% of the registered enterprises in Mongolia send their tax returns to the tax authority,  half of them  report loss making balance sheets.   

Therefore, creating legal environment to regulate cash sales and purchases is being highlighted as the primary solution by the government and is about to start work on it.       

source: www.news.mn

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