Mongolia’s parliament has begun discussing amendments to the Special Excise Duty Law, proposing a 30% excise tax on smokeless tobacco and cigarettes. This legislation comes in response to a trade agreement with the Eurasian Economic Union, ratified in December 2024, which eliminates tariffs on over 300 goods, including tobacco. Concerns have been raised that removing tobacco tariffs could lower prices, increase consumption, and reduce state revenue. The proposed tax aims to offset potential revenue losses and mitigate public health risks associated with increased tobacco use. The government was tasked with drafting the legislative changes following a parliamentary resolution passed in November 2024 to address the agreement’s impact. The bill is currently undergoing its initial review by lawmakers.