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Mongolian Excise Tax Law Comparison of Existing Law and Version Passed

Topic	Current Law	As Passed 29 June 2006
Taxpayer	• Individuals, businesses and organizations importing or producing goods subject to excise tax	• Individuals, businesses and organizations importing or producing goods subject to excise tax and that conduct quizzes and gambling activities
Goods Subject to Excise Tax	• Alcohol • Tobacco • Petroleum fuels • Passenger vehicles	• Alcohol • Tobacco • Petroleum fuels • Passenger vehicles • Gaming equipment and activities o Gaming tables o Slot machines o Totalizers o Bookmaking centers
Valuation of Goods	• Producer’s selling price if produced in Mongolia • Comparative goods price if actual sales or import price cannot be determined • Arms-length transaction price if sold to related party	Not addressed
Tax Rates: General	• Domestic raw spirits - 85% of value • Domestic hard liquor - 80% of value • Domestic wine - 30% of value • Imported raw spirits - $7.00/liter • Imported hard liquor <40% - $5.00/liter • Imported hard liquor >40% - $6.00/liter • Imported wine - $.75/liter • Cigarettes and similar - $.30/100 • Pipe tobacco and similar - $.15/kg • Beer - $.20/liter • Domestic gasoline <90 octane - $11.00/ton • Domestic gasoline >90 octane - $12.00/ton • Domestic diesel fuel - $15.00/ton	• Domestic raw spirits sold to distilleries - $1.00/liter • Domestic raw spirits sold to others - $10.00/liter • Domestic liquor <40%; Aimags - $1.60 • Domestic liquor <40% ;UB - $2.00 • Domestic liquor >40%; Aimags - $4.50 • Domestic liquor >40% ;UB - $4.50 • Domestic wine <35% - $.50/liter • Domestic wine >35% - $4.50/liter • Domestic commercial milk alcohol - $.20/liter • Imported liquor <40% - $5.00/liter • Imported liquor >40% - $6.00/liter • Imported wine <35% - $1.50/liter • Imported wine >35% - $6.00/liter • Cigarettes and similar - $.60/100 • Pipe tobacco and similar - $.30/kg • Beer - $.20/liter • Domestic gasoline <90 octane - $11.00/ton • Domestic gasoline >90 octane - $12.00/ton • Domestic diesel fuel - $15.00/ton

Tax Rates: Border-based on Imported Fuel (no change)

• Gasoline <90 octane - $11.00/ton (Tsagaannuur, Yarant, Borshoo, Artssuurit, Burgastai, Tes, Gashuun Sukhait border posts)

• Gasoline <90 octane - $17.00/ton (Khankh, Ulikhan Maikhan border posts)

• Gasoline <90 octane - $38.00/ton (Sukhbaatar, Zamyn-Uud, Erentsav, Altanbulag border posts)

• Gasoline >90 octane - $12.00/ton (Tsagaannuur, Yarant, Borshoo, Artssuurit, Burgastai, Tes, Gashuun Sukhait border posts)

• Gasoline >90 octane - $21.00/ton (Khankh, Ulikhan Maikhan border posts)

• Gasoline >90 octane - $43.00/ton (Sukhbaatar, Zamyn-Uud, Erentsav, Altanbulag border posts)

• Diesel fuel - $15.00/ton (Tsagaannuur, Yarant, Borshoo, Artssuurit, Burgastai, Tes, Gashuun Sukhait border posts)

• Diesel fuel - $19.00/ton (Khankh, Ulikhan Maikhan border posts) • Diesel fuel - $48.00/ton (Sukhbaatar, Zamyn-Uud, Erentsav, Altanbulag border posts)