Agricultural supplies to be exempted from VAT through 2025

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During its plenary session on April 23, Parliament approved the laws on value-added tax exemption and customs duty exemption.

In accordance with the laws, new tractors, combines, machinery, irrigation equipment, forestry and poultry machinery, fertilizers, and pesticides that are essential for agricultural production will be exempted from value-added tax and customs duty.

The Law on Value-added Tax Exemption will be effective through January 1, 2025, and the Customs Duty Exemption Law is effective through January 1, 2022.

The initiators of the laws believe that their adoption will create conditions for stabilizing the growth of agricultural production, improving the economic capacity of farmers and producers, introducing new technologies, farming in an environmentally friendly manner, supporting employment in farming, and ensuring supply of healthy and safe food.


At the plenary session of Parliament, a parliamentary resolution on the Constitutional Court’s conclusion of April 16, 2021 was approved with 82.4 percent of 68 members in attendance voting in favor.

Parliament’s approval of the Constitution Court’s conclusion makes the current and former presidents of the country ineligible to run for presidency again.

On April 16, the court concluded that Articles 3.1.2 and 5.4 of the Law on Presidential Election violated the Constitution of Mongolia.

Article 3.1.2 of the law stipulates that a presidential candidate is a person who is a citizen of Mongolia, has reached the age of 50, has a permanent residence in the country for at least the five years prior to the election, registered their candidacy for the president of Mongolia, and received a candidacy card.

Article 5.4. of the same law states that a citizen of Mongolia who reached the age of 50, has a permanent residence in the country for at least the five years prior to the election, and fulfills all other requirements set in the Constitution of  Mongolia, is eligible to be elected as president of Mongolia.

Required changes will be made to the Law in Presidential Election to make the law in compliance with the Constitution.

The Constitutional Court ruled that the following provisions of the Constitution of Mongolia were violated.

• Article 1.2 states that the fundamental purpose of state activity is the insurance of democracy, justice, freedom, equality, national unity, and respect of law.

• Article 30.2 stipulates that a citizen of Mongolia who reached the age of 50, has resided in the country for at least the last five years, and is a native of Mongolia shall be elected as president only once for a term of six years.

• Article 70.1 reflects that laws, decrees, and other decisions of state bodies and activities of all other organizations and citizens must be in full conformity with the Constitution.

Misheel Lkhasuren