Council considering tariff increases

The Customs Tariff Council is considering raising the tariffs on imported building materials and imported wheat. Exempting agricultural machinery and some agricultural products from tariffs is also under consideration. The council, headed by Finance Minister S.Bayartsogt discussed the changes at a meeting on September 23.

Mongolia has more than 500 domestic manufacturers of building materials, but their factories are not running at capacity because imported materials are cheaper. The manufacturers say the tariff on imported materials should be raised to increase domestic production.

According to a study by the Ministry of Road, Transportation and Urban Development, projected construction projects require 48 different types of building materials, 15 of which can be supplied by domestic manufacturers. S.Bayartsogt asked the council to research the makers of those materials in detail.

It is expected that Mongolian farmers will supply 100 percent of the country’s required wheat and flour in 2011 and 2012. Therefore, the council is considering raising the tariff on imported wheat by 20 percent to protect farm jobs, provide food security, and support domestic production. Bayartsogt asked the council to assess wheat that is imported by railroad and through border checkpoints.

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