2024, the meeting of the Mongolian government amended Resolution No.332 of 2015 on the determination of the proportion and share of tariffs on some imported goods, reducing the tariff on imported cement from 20% to 5%. The head of
Mongolia's largest cement producer, Mongolia Polymer () Co., Ltd., criticized the decision on his personal website. "Yesterday, the government meeting suddenly decided to abolish the duty on imported flour and reduce the duty on imported cement to 5%," she said.
1. There are five factories in total, but all of them are private enterprises. Adequate preparations should be made before the construction season starts. Only after normal production can thousands of employees be paid and start the planned work of generating income for the state budget.
2. The establishment of these private national industries has freed Mongolia from foreign imports and is the most effective development in 30 years. The industry has contributed to the balance of payments surplus. But with this decision, the outflow of foreign exchange will become active, and the exchange rate will rise after the election.
3. What will be the result of importing a large amount of cement? First of all, there are quality problems. At present, the Mongolian Customs has no laboratory that can test the 28-day compressive strength of cement. Cement is the bread of construction, so called for a reason. As the saying goes, good bread is good for health, so good cement can build long-term buildings.
4. Cement accounts for only 8% of construction costs, and it is biased to say that construction and housing prices have risen as a result of the increase in cement prices . When the cement increases by 10%, the total material cost increases by less than 1%. Other expensive building materials have a greater impact on construction costs than cement concrete.
As the election approaches, the ruling party makes many sudden (unexpected) decisions. This seems to be contrary to the large-scale reform of the new revival policy, which, despite talking about industrial revival, has not received any strong support and development so far. Instead, start implementing this perverse policy of letting the future stagnate?
