On May 14, during its Cabinet meeting, the Government approved a list of equipment and spare parts for small and medium enterprises, which are to be exempted from customs tax until 31 December 2018.
The Government action program in 2016-2020 indicates that domestic production would be backed by tax and customs service. Moreover, producers and professional organizations requested to extend the effective period of the previous resolution and add 623 types of equipment to the list. Considering these, the Government passed the new list, which includes 641 types of equipment of 27 sectors.
Law on Exemption of equipment and spare parts for SME from customs and value added taxes was adopted in 2014 and took effect until the end of 2016. The measure aimed at supporting SMEs, increasing jobs and manufacturing products that replace import products or boost exports. A total of over 7000 equipment and spare parts of 3201 types were imported by 1419 individuals and companies in 2014-2016 and according to the Government regulation, tax of MNT41 billion were exempted, of which MNT13 billion were for customs tax and MNT28 billion for VAT. The productivity of companies that enjoyed tax exemption, increased by 20-30 per cent.
Equipment for processing meat, wood, wool, cashmere, leather, milk, fruit and berries was involved in tax exemption the most and production of these kinds of products grew by 18 per cent in 2016 compared to 2014.
On May 14, during its Cabinet meeting, the Government approved a list of equipment and spare parts for small and medium enterprises, which are to be exempted from customs tax until 31 December 2018.
The Government action program in 2016-2020 indicates that domestic production would be backed by tax and customs service. Moreover, producers and professional organizations requested to extend the effective period of the previous resolution and add 623 types of equipment to the list. Considering these, the Government passed the new list, which includes 641 types of equipment of 27 sectors.
Law on Exemption of equipment and spare parts for SME from customs and value added taxes was adopted in 2014 and took effect until the end of 2016. The measure aimed at supporting SMEs, increasing jobs and manufacturing products that replace import products or boost exports. A total of over 7000 equipment and spare parts of 3201 types were imported by 1419 individuals and companies in 2014-2016 and according to the Government regulation, tax of MNT41 billion were exempted, of which MNT13 billion were for customs tax and MNT28 billion for VAT. The productivity of companies that enjoyed tax exemption, increased by 20-30 per cent.
Equipment for processing meat, wood, wool, cashmere, leather, milk, fruit and berries was involved in tax exemption the most and production of these kinds of products grew by 18 per cent in 2016 compared to 2014.