Parliament approved the Law on Capital City Tax on 19 June 2015 and the law entered into effect on October 1, 2015. The Law on Capital City Tax encompasses and includes the General Taxation Law, Budget Law and the Law on the Legal Status of the Capital City and other laws and legal acts enacted in conformity with them.
The law imposes a capital city tax for the first time In Mongolia. The capital city tax is imposed on the sale of alcohol and cigarettes, the supplies of hotel and resort services, and services offered in restaurants and bars.
The tax rate (up to 1%) will be determined, region by region, by the Citizens Representative Khural of the Capital City (or by the local parliament) depending on the location and population size of a particular area within Ulaanbaatar city.