BUSINESS ENVIRONMENT REFORMS TO SUPPORT A MORE FAVORABLE INVESTMENT CLIMATE

 

Ulaanbaatar city officials met with representatives of businesses operating in the hospitality, tourism, and food service sectors to discuss key challenges affecting the business environment, as well as potential policy measures and support mechanisms.

The discussion covered issues including urban amenities, parking for private vehicles and tour buses, labor shortages, taxation, and regulatory inspections. Industry associations proposed reducing the city tax rate from 2% to 1%, and the proposal is expected to be reviewed further and submitted for consideration by the Ulaanbaatar City Council.

From a capital market perspective, lower tax and regulatory costs, together with a more stable business environment, can support companies’ cash flow, profitability, and investment capacity. Over time, this may improve the conditions for businesses to issue securities, attract investors, and mobilize more private capital for urban projects and services.

UBIM works to develop nonbudgetary financing solutions for Ulaanbaatar’s projects and programs and to expand private sector investment and participation.