The cabinet meeting on April 25 backed in principle a draft law on exemption from customs tax and VAT. It will be submitted to parliament, reflecting proposals of Ministers.
Mongolia imports some 2,000 units of public transportation vehicles a year. As estimated, 100-150 vehicles could be assembled in Mongolia, so the draft says about freeing the domestic companies, engaged in vehicles matters, from the above taxes. This would reduce money spent for productions by 15%, contributing thus to boosting of a competitiveness in the national market.
As of today, this or that entity, which deals with a yearly production of 20 buses, pays 834 million Togrog for the customs tax and VAT. If the law comes into force, Mongolia will raise VAT of over 6 billion Togrog, improve related staffers, create some 220 jobs, introduce progressive techniques and technologies.
The cabinet meeting on April 25 backed in principle a draft law on exemption from customs tax and VAT. It will be submitted to parliament, reflecting proposals of Ministers.
Mongolia imports some 2,000 units of public transportation vehicles a year. As estimated, 100-150 vehicles could be assembled in Mongolia, so the draft says about freeing the domestic companies, engaged in vehicles matters, from the above taxes. This would reduce money spent for productions by 15%, contributing thus to boosting of a competitiveness in the national market.
As of today, this or that entity, which deals with a yearly production of 20 buses, pays 834 million Togrog for the customs tax and VAT. If the law comes into force, Mongolia will raise VAT of over 6 billion Togrog, improve related staffers, create some 220 jobs, introduce progressive techniques and technologies.