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Mongolian Parliament to Consider Windfall Profits Tax Revisions on Gold |
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Tuesday, 14 November 2006 |
MonInfo, Mongolia reports: A draft law submitted to the Speaker of Parliament Monday calls for the 68 percent windfall profits tax gold price threshold to be raised from US $500 to $650 amid falling gold sales to the Mongol Bank, officials said Tuesday.
An official in the office of Parliament, speaking in anonymity, said that it had been submitted but has not yet been distributed to Members of Parliament for discussion, confirmed by MPRP and DP Members of Parliament.
According to Parliament’s schedule and barring a possible special hearing, the draft law could see postponement until December after the 2007 budget and monetary policy are passed, which under law must be done before December 1st.
The windfall profits tax, passed last May, calls for a 68 percent tax on sales of gold when the world prices rise above US $500 per ounce and $2600 per tonne of copper.
Gold sales to the Mongol Bank have drastically decreased in the first ten months of 2006, with a deficit of more than 5.5 tonnes compared to the same period for 2005.
During the Discover Mining Conference in September, some lawmakers claimed that the tax would be, “short-lived,” and predicted a rescinding during the fall session.
The same governmental source said that revisions on copper were not included in the draft law and would most likely not be addressed at all.
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