At its weekly, the Cabinet decided on exempting cement and cement products from customs duty until the end of this year. Before this decision, the customs duty on cement was 20 percent.
The price of domestically produced cement per tonne ranges between MNT 238,000-335,000. However, due to the shortness of the construction season in Mongolia and the increase in the workload of sectors such as construction and road transport, the price of cement increased to MNT 600,000 per tonne. Therefore, the decision aims at reducing cement prices and improving accessibility for domestic demand.
National producers are working at full capacity, but the production rate falls short of the rising demand. It is estimated that the price of cement can be reduced by MNT 100,000 per tonne by exempting it from import duties.