Ulaanbaatar
Minister submits bill on tax exemption for wheat seed
PoliticsUlaanbaatar /MONTSAME/ Minister of Food and Agriculture R.Burmaa presented a bill on exempting wheat seed from customs and value-added taxes to the Chairman of State Great Khural (parliament) Z.Enkhbold December 23.
In 2015, a total of 215.7 thousand ton crop has been harvested, of which 203.9 thousand tons are wheat. Most of the crop fields have been hit by drought, due to the cold weather in May, to sudden temperature rise in June up to 60-64 Celsius in some areas, and to increased precipitation between August 12 and September 20.
Mongolia prepared fallow in 335.7 hectare area for the next year’s crop planting, which requires 48 thousand tons of wheat seeds. However, the state reserve accumulated only 28.0 tons this year. In order to meet the shortage of 20.0 tons of wheat seeds, the National Food Security Council recommended an import.
Value of the tax exemption has not been reflected in the expected revenue of 2016 State Budget. Therefore, this will not become a burden on state budget revenue, said the Minister.
