Ulaanbaatar
Concept of bill on exemption from customs tax and VAT discussed
PoliticsUlaanbaatar /MONTSAME/ The cabinet meeting on Monday backed in principle a concept of a draft law on exemption from customs tax and VAT.
Obligations were given to B.Bolor, the Minister of Finance; D.Dorligjav, the Minister of Justice; and D.Erdenebat, the Minister of Industry, to co-approve the concept, to work out the bill, and to submit it to the cabinet meeting.
Mongolia imports some 2,000 units of public transportation vehicles a year. It has been estimated that 100-150 vehicles could be assembled in Mongolia, so the draft aims to exempt the domestic companies of vehicles from customs tax and VAT, which will reduce expenses of productions by 15%, contributing to boosting of a competitiveness in the national market.
As of today, companies of vehicle productions pay 834 million Togrog as customs tax and VAT to assemble 20 buses a year. If the law comes into force, Mongolia will be able to raise VAT of over 6 billion Togrog, to improve related staffers, to create some 220 jobs, and to introduce progressive techniques and technologies.
