Cabinet votes in support of fuel tax exemption, road projects, and youth development

Cabinet meeting

During Cabinet’s weekly Wednesday meeting, an excise tax cut, support for road construction projects, and a bill on youth development were approved. The ministers agreed to further reduce excise taxes on gasoline and diesel fuel to support fuel importers, which have reportedly faced financial challenges due to the depreciation of the MNT.

Cabinet lowered excise taxes to 160,000 MNT per ton for gasoline and 180,000 MNT per ton for diesel, the second tax cut since October 5. Cabinet members approved an overview of a bill to promote youth development, and the Minister of Justice and Interior Affairs and Minister of Labor and Social Protection have been instructed to prepare the bill for a full Cabinet review.

The bill addresses the development needs of citizens from the ages of 16 to 40, who made up 42.9 percent of Mongolia’s population as of 2015. Amendments to the Law on the Legal Status of the Capital was approved.

Ulaanbaatar’s leadership believes that the amendments will provide Ulaanbaatar with the legal status of a metropolitan city with a focus on safety, a healthy environment, good governance, competitiveness, and civic participation by enhancing the responsibilities of district mayors, administrators, entrepreneurs, and individual residents.

Cabinet agreed to expand the UlaanbaatarDarkhan highway to become a four lane roadway. The highway’s construction would include renovating bridges, digging a 1,000 meter tunnel through Takhilt Hill, leveling hills along the roadway, and establishing crosswalks.

Prime Minister J.Erdenebat instructed Minister of Roads and Transportation D.Ganbat to study foreign and domestic financing resources for conducting feasibility studies and drafting blueprints for the highway’s expansion.

A protocol on amendments to the Mongolia’s partnership and cooperation agreement with the European Union was approved by Cabinet. And ministers also approved conducting a study to analyze household income across Mongolia in the first four months of 2017.


  1. Fuel tax cut is in my humble opinion, wrong move. Every country is striving to reduce their dependence on fossil fuel and emissions, the latter of which is particularly a great concern to the capital city.