The government of Mongolia made decision to support infrastructure, processing industry and realization of major mining projects. The Cabinet Ministers’ Meeting resolved to present the draft amendment law on Value Added Tax Law. If the State Great Khural passes the amendment, some products will be exempted from tax.
MP S.Bayartsogt, Minister for Finance, has more.
Q: What products are exempted from tax?
S.Bayartsogt: According to the draft amendment, facilities, equipments for the energy and electricity production and supply, copper, zinc, iron and aluminum smelting and gold and silver purifying, and coking coal factories will be exempted from tax.
In addition, special equipments for gas production, storage and gas exploration will be exempted. Also, railway locomotive and its parts, such as signalization and communication for such purpose, will be exempted.
Q: Will it only cover for mining or infrastructure industry?
S.Bayartsogt: Not exactly, in order to increase meat production, meat and other meat products will be exempted. Ulaanbaatar meat supply is made by meat dealers, who process meat manually and don’t pay tax, but factories always pay tax, which meets with standard and requirement set by the state inspection. If we implement this amendment, meat price will become cheaper for the consumers.
Also, based on the farmers’ request, vegetable and fruit products are exempted from the tax.
Plus, vehicles with gas fuel engine capacity less than 1500 cm/3 and imported within 5 years of its production, will be exempted.