Producers Appreciate Government Policy to Support National Food IndustryPolitics
Ulaanbaatar, March 17, 2023 /MONTSAME/. Within the framework of the ‘Food Supply and Safety’ National Campaign President of Mongolia Ukhnaagiin Khurelsukh today visited Central Express CVS JSC food processing plant, "Shine Gantig" LLC, packaging company and "Trust Trade" LLC, meat processing company.
As part of the ‘Food Supply and Security’ National Campaign, some MNT223 billion has been reflected in this year's budget, which is the largest financial support to the food and agriculture sector in the last 30 years. Concessional loans of MNT 17 billion will be granted to the livestock sector, while MNT52 billion to the agricultural sector.
The national producers expressed their gratitude for the long-awaited concessional loans, totaling one trillion MNT with an interest rate of 3-5 percent with a maturity of 3-5 years. They also underlined that the government support, including a 90 percent tax reduction to enterprises with annual sales of less than MNT 1.5 billion, VAT exemption for some food products, will provide a stimulus to their stable operation and expansion, and job creation and further leads to fully meet domestic needs with 19 main types of food products in the next five years.
Income tax was reduced by 90 percent for enterprises with an annual sales income of less than 1.5 billion MNT, and certain types of food products were exempted from VAT. To protect the domestic market and support enterprises, it is planned to gradually increase import tax on certain types of food products. The management of the company said that the support will be a strong impetus for keeping and expanding their operations and creating jobs.
The President was asked to support establishing food production complexes, direct government purchases in preference to national products, and support the light industry alike the food industry.