The Speaker of the Parliament, S.Byambatsogt, received a draft “Law on Economic Freedom”, submitted by Members of Parliament O.Tsogtgerel and B.Jargalan.

During the presentation, MP O.Tsogtgerel emphasized that while the Constitution of Mongolia contains strong guarantees for property rights, differing interpretations in sectoral legislation have led to challenges in practice, including constraints on business activity and instances perceived as encroachments on private property. He noted that the new draft law aims to reinforce constitutional principles by clearly defining when and how limitations on economic freedom may be imposed, as well as establishing safeguards for protecting such freedoms.

According to the initiators, the draft seeks to strengthen the legal foundation of economic relations by translating constitutional principles into enforceable mechanisms. It proposes explicit guarantees for the inviolability of lawfully acquired property, allowing restrictions only in cases of public necessity, based on court decisions and with prior compensation at fair market value.

The bill also includes provisions prohibiting the retroactive application of tax and other legal regulations that would worsen the legal status of individuals and businesses, thereby promoting legal stability. It further emphasizes the protection of freely concluded contracts, ensuring their enforcement through an independent and fair judicial system.

In addition, the draft affirms the right of individuals and legal entities to engage in any economic activity not prohibited by law, while placing an obligation on the state to maintain fair competition in the market. It also establishes the principle that any restriction on fundamental economic rights must be limited strictly to what is necessary to protect the public interest, in line with constitutional provisions.

The proposal is now expected to be reviewed in accordance with parliamentary procedures, according to the Parliament’s Press and Public Relations Department.