Tax-exempt to be applied on imported energy from China and Russia

Oyundelger 2017-12-26 08:12

Energy & Science

The Mongolian Parliament has passed a bill on Exemption of imported electricity by Western Energy System.

The Mongolian Parliament has passed a bill on Exemption of imported electricity by Western Energy System. One of the three unconnected energy systems in Mongolia, the Western Energy System (WES) is the state-owned company which imports energy from Russia and China. According to the bill, the imported electricity by the company will be exempt from customs and value-added taxes until 2021. Currently, WES pays 5 cents per kWh (kilowatt hour) for import from Russia, while import from China for 10 cents per kWh. It is then sold to consumers at a cheaper rate.  Thus, the exemption of imported tax by the state-owned company prevents the company from facing large loss. The exemption bill is the fourth following the exemptions in 2005, 2011 and 2016.