Deputy PM: price control in nine months effective

Chairing a meeting of the Steering Committee for Price Management in Hanoi on October 11, Deputy PM Khai, who is also the committee's head, said thanks to synchronous measures such as reducing lending rates, stabilising the foreign exchange market, accelerating public investment disbursement and supporting real estate and corporate bond markets, the supply of essential goods has been ensured with prices of goods kept basically stable, in line with the pricing scenario set by the committee. 

A representative from the Finance Ministry said as early as late 2022, the ministry had proposed price control solutions related to tax, fee, and land rent applicable for 2023, with an estimated total support value of about VND196 trillion (US$8.16 billion), including VND121 trillion with payment deadline extended and about VND75 trillion exempted and reduced.  

It also suggested a 2% reduction in the value-added tax (VAT) from July 1 until December 31, for most items subject to a 10% VAT rate. With this measure, it is estimated that the reduced tax amount will be some VND24 trillion.

The ministry submitted to the Government and the National Assembly Standing Committee for approval a resolution on environment protection tax rates for gasoline, oil and lubricants, effective from January 1-December 31, 2023, which is expected to reduce State budget revenue by approximately VND38 trillion.

About solutions for 2024, the ministry will continue to consider extending the reduction of environment protection tax and the VAT, and reducing some export and import taxes to support domestic production and trade, and certain fees and charges to encourage the use of online public services.

Regarding monetary policy management, the State Bank of Vietnam made four consecutive reductions in interest rates to support production and trade and promote economic growth.