Mongolia Business and Mongolian Daily Business News

Q: The Government will revoke tax on oil product and petroleum. What is your position on it?

S.Bayartsogt: When price increase, tax issue is discussed through parliament. The Government has a right to manage. Accordingly, Government of Mongolia held meeting on this issue and decreased tax on petroleum twice and exempted VAT and Customs tax. But petroleum price was still increasing. But now petroleum price is decreasing sharply, so we are reviving tax on petroleum starting from October 15 2008. We will pursue the policy to halt all types of tax and subsidy.
Q: Will petroleum price increase in the future if you revive tax on petrol?
S.Bayartsogt: The First Deputy Prime Minister met with the senior officials of the petroleum importing companies. As for today, if compare the petrol price set by the importing companies and the world market increase, price in Mongolia is higher. Therefore, we proposed them to decrease their price and they received it. Both sides reached the common consent on the possibilities to stabilize the price of petroleum.

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