Bill on customs duty, VAT exemptions to agricultural machinery, supplies submitted

2021-01-27 12:22:17

Ulaanbaatar /MONTSAME/. Members of the State Great Hural (Parliament) of Mongolia Ch.Undram, G.Damdinnyam and T.Aubakir submitted a bill on Exemption from Customs Duty and Value Added Tax to G.Zandanshatar, Speaker of the Parliament on January 26, 2021.

According to the Law on Value Added Tax approved by the State Great Hural on May 29, 2008, new agricultural tractors, combines, machinery, flour mills and irrigation equipment, fertilizers and plant protection active substances were subject to exempt from value added taxes until December 31, 2020. 

This legal support stabilized the growth of costly and declining agricultural production, improved the economic capacity of farmers and producers, sustained employment, and provided a healthy and food source for its citizens.

In the Action Plan of the Government of Mongolia for 2020-2024, the implementation of the ‘Atar-IV’ campaign was included to ensure sustainable agricultural production development by increasing export and its processing capacity, as well as increasing crop rotation and fodder production.

Therefore, the legislative initiators deem that it is necessary to continue the exemption of agricultural machinery and supplies, fertilizers and plant protection active substances from value added taxes during the economic crisis and currency growths.

Press and Public Relations Department of the State Great Hural