Deputy Speaker G.Batkhuu submitted to Speaker D.Demberel on Wednesday a draft law to extend tax breaks for farmers.

In 2008, Parliament approved a law that exempts many agricultural products from value-added and customs taxes, including farm machinery and fertilizers, but the law is scheduled to expire on December 31, 2011.

Those who support extending the tax break say it has enabled many farmers to purchase new equipment and adopt the latest harvesting techniques. They also say the tax break has increased output, improved productivity, increased employment, and resulted in healthier food.

The draft law would extend the tax breaks until December 31, 2016. G.Batkhuu said he believes harvests will continue to increase is the extension is approved.