Cement products to be exempt from import duties until the end of 2022

2022-09-14 15:58:35

Ulaanbaatar /MONTSAME/. At today’s regular meeting of the Cabinet, a decision was made to exempt cement products from customs duty until the end of this year.

Minister of Finance B.Javkhlan said, "The Cabinet came to this decision mainly due to the current situation. The busiest period in the road and construction industry is the 2nd and 3rd quarter of each year. At the same time, out of the four main Mongolian cement factories, the Khutul cement-lime factory is completely shut down due to technological innovation, expansion of production, and other repairs. As a result, there is currently a shortage of cement in the market, which could pose a risk of slowing down large-scale construction projects such as the Darkhan road construction.

The Cabinet believes that by canceling the customs duty of 20 percent on all cement products until the end of this year, the current price of MNT 500-600 thousand per ton will drop to MNT 400 thousand.

"In addition, another factor for the decision was the prevention of future increases in the price of cement. Thus, temporary measures are being taken to meet the domestic demand with imported cement. In the future, the policy of supporting domestic production and customs duties should be seriously considered. Apart from cement, special attention should also be paid to agricultural products. In doing so, the balance of three things must be ensured: the capacity of domestic producers, domestic demand, and filling the demand with imported products. This is the ultimate goal of satisfying the interests of consumers and setting fair prices”, added the Minister.