VAT exemption stimulus for vehicle assembly

2016 оны 4 сарын 20

Currently Mongolia imports around 2000 vehicles every year. Between 100 and 150 of these can be assembled in Mongolia. The operators of the bus assembly plant in question, currently has to pay MNT 834 million in custom tax and VAT to import the parts necessary for assembling every 20 buses. Therefore, in order to reduce manufacturing costs by 15% and to increase competitiveness on the domestic market the imported parts are to be exempted from VAT. When this law takes effect, it is estimated that MNT 6 billion will be generated and 220 job positions created which will enable the vehicle assembly sector to acquire modern technology.

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