R.Burmaa MP submits bill on VAT exemptionEconomy | Agriculture
Ulaanbaatar /MONTSAME/ The Minister of Food and Agriculture R.Burmaa MP Wednesday submitted to the Speaker a bill on exemption from VAT, for a prompt discussion.
The land farming must be supported by the state through a tax and credit policy because this industry is dependent on natural causes and the investment reimbursement takes a long time, she said.
By the law on VAT exemption, adopted in 2008, the tractors, harvest-combines, machines, facilities of flour factory, and also irritation, forestry equipment, fertilizers and pesticides were exempted from the VAT until December 31 of 2011, then it was prolonged from January 19 of 2012 by an amendment to the law. "This really contributed to waking up the land farming industry with high expenses, to regularizing of a growth of the industry, to augmenting jobs in localities, and to providing people with healthy and safe foods," she explained.
It has been calculated that if 5-6 percent of the agricultural facilities are renewed every year with the private sector’s investments, the state budget money, and domestic and foreign investments, almost 100% of all tools can be renovated in 6-8 years.
The newly formulated bill also reflects clauses on exempting the agricultural facilities from VAT, said R.Burmaa.