On 28th of April, MP D.Erdenebat, leader of the Democratic Party parliamentary group presented a request for delaying the date of the increase in car tax which will came into effect starting 1st of May. Excise tax on passenger cars will be increased depending on its date of manufacturing and engine size. However, excise tax on hybrid, electric and gasoline vehicles will be eased by 50 per cent; currently they are fully exempted from tax.
Amendments to the 2017 State Budget, which were approved by Parliament, laid out to raise seven types of taxes, as the Government agreed with the International Monetary Fund in the scope of a three-year Extended Fund Facility. The tax rate increase of four types of taxes will come into effect starting 1st May. These include a tax on interest from bank savings, customs tax on imported cigarettes and an excise tax on passenger cars.