Tobacco and alcohol taxes are to gradually increase by 10% in 2018, 5% in 2019 and 5% in 2020. This is one of eight fiscal policy actions to be undertaken by the Government of Mongolia (GoM) under the International Monetary Fund’s (IMF) Extended Fund Facility programme.

The government has consistently been advocating for the tax increase on alcohol and tobacco as a policy measure that has dual benefits: increasing state revenues and protecting human health as an increase in price of cigarettes and tobacco is proven to be very effective in lowering the consumption of these products by the public.

Taxes of Tobacco and alcohol are much lower than other countries.