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Z.Mendsaikhan: We will reduce the burden on farmers and provide support through tax policy

Z.Mendsaikhan: We will reduce the burden on farmers and provide support through tax policy

Draft Law on Value Added Tax Exemption / submitted by the Government or to be discussed /; The discussion is underway.

Member of the Government, Minister of Food, Agriculture and Light Industry Z.Mendsaikhan introduced the project.

In his introduction, he stated in the Action Plan of the Government of Mongolia for 2020-2024, approved by the Parliament Resolution No. 24 of 2020, “By implementing the 4th Atar Campaign, ensuring sustainable agricultural production development, increasing export and processing capacity, crop rotation and fodder production. The goal is to fully meet the food needs of the population through domestic production by improving the productivity and competitiveness of the sector and supporting intensive animal husbandry.

Due to the spread of the coronavirus (Kovid-19) epidemic, the prices of machinery, equipment, fertilizers and plant protection products used in agricultural production have increased by about 30 percent in foreign markets, which has negatively affected domestic production and reduced opportunities for timely technological procedures. At the same time, it creates conditions for rising product prices. 

In addition, due to the lack of technological reforms in the agricultural sector, the lack of tax burden on farmers and producers, and the lack of mechanization of potatoes and vegetables have led to the fact that most of the planting, harvesting and sorting work is done manually, increasing labor costs and reducing competitiveness. .

Therefore, new tractors, combines, machinery, irrigation equipment, forestry and poultry machinery, equipment, fertilizers and pesticides are in great demand in agricultural production in the face of the epidemic, economic crisis and currency appreciation. A draft law on value-added tax exemptions has been developed to reduce taxes and support agricultural enterprises. 



The afternoon session of the Parliament has started. The following issues will be discussed at the meeting.

  • Draft Law on Trademarks and Geographical Indications and accompanying draft laws / initial discussion /;
  • Draft revised Patent Law and accompanying draft laws / initial discussion /;
  • Draft law on value added tax exemption / submitted by the Government or to be discussed /;
  • Draft law on customs tax relief / submitted by the Government or to be discussed /;
  • The issue of changing the composition of some standing committees.