ULAN BATOR, March 5 (Xinhua) -- Mongolia has formulated a draft law on tax reform in a bid to attract more investment and optimize the business environment, Prime Minister Ukhnaa Hurelsukh said on Monday.

"We aim to encourage the fair businessmen and good taxpayers by reducing their taxes," Hurelsukh said at an event introducing the tax law reform.

Efforts will be made to fight tax fraud and tax evasion, he said.

Under the tax reform, 90 percent of the tax paid by small and medium-sized businesses with income of less than 1.5 billion MNT (630,000 U.S. dollars) per year will get a refund.