‘Basic assessment will be made to calculate land fees’

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During its plenary session on December 1, Parliament reviewed the draft revision of the Law on Land Payment and other corresponding bills, submitted by the government on June 17.

State Secretary of the Ministry of Construction and Urban Development S.Magnaisuren explained that land category, zone and basic assessment must be taken into account to calculate land fees. According to the government’s order, Ulaanbaatar is divided into 16 zones and land fees are determined accordingly. Regional and market price data are analyzed to set the land price. Factors affecting the land price are calculated and the basic assessment is made. Fees are imposed on more than 500,000 units of land across the country. In 2021, the state budget collected 112 billion MNT from land fees. In accordance with the draft revision of the law, it will be possible to earn 22 billion to 458 billion MNT per year through these fees, he said.

The bill stipulates that local councils will be responsible for land evaluation. Every three years, the basic land assessment will be updated. It also states that the land fee will increase if a sanitary facility, which does not meet the standards, is built on the plot of land. If the land is used for mining purposes, the payment will be determined by local councils, says the state secretary.

During the session, Parliamentarian B.Enkhbayar expressed, “Land is the only asset that does not burn, collapse or perish. In this sense, land should be the most expensive asset. We have kept this precious resource worthless. There are more than 90 types of land appraisal in countries. The real value of land depends on many factors such as its location, noise and earthquake resilience.”

Legislator B.Jargalmaa asked, “As of today, how many citizens of Mongolia own land? Will there be a change in land ownership regulations under this bill? How much money do you expect will be collected in the state budget after this bill is approved?”

Head of the Ulaanbaatar Land Management Department A.Enkhmanlai responded that it has been more than 20 years since the Law on Land Acquisition and Land Law came into force. More than 1.1 million citizens own or use plots of land, he stressed.

Member of Parliament Ts.Munkhtsetseg also questioned, “Is there a possibility not to increase the payment for private land? What are the responsibilities of land owners and users?”

State Secretary S.Magnaisuren replied, “It can be understood that the land payment system in Ulaanbaatar will change dramatically. In accordance with the Law on the Legal Status of Ulaanbaatar and Law on Administrative and Territorial Units of Mongolia, the issue of local land payments will be transferred to provinces and localities. They will calculate land fees, zoning and the unit area of enterprises. People will pay higher fees for getting mining and exploration licenses.”

At the session, Speaker of Parliament G.Zandanshatar clarified what regulations on urban decentralization are included in the bill. 

In his response, Minister of Construction and Urban Development B.Munkhbaatar highlighted that in Ulaanbaatar, regulations for land ownership issues have been included in the draft revision of the law.

Misheel Lkhasuren