The Standing Committee on the Budget decided
on December 21 to have further discussion on the law draft on the Value Added
Tax. It is proposed to exempt
locally produced wheat and fruits from paying VAT. The Ministry of Road,
Transportation, Construction and Urban Planning and the Ministry of Mineral
Resources and Energy want to add some more provisions of their own, to exempt energy-related
investment and material for new railway buildings from paying VAT

The head of the committee, Ts.Davaasuren,
said VAT reduction should apply to the food industry, too, and supported Ch.Ulaan’s
demand to have a working group review the whole issue to benefit the common man.