Price control work was effective in the first nine months of this year, with the average consumer price index (CPI) in this period up 3.16 per cent year on year, leaving plenty of room to maintain stability in prices, said Deputy Prime Minister Lê Minh Khái.

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

A representative from the Finance Ministry said that as early as late 2022, the ministry already proposed price control solutions relating to tax, fee, and land rent applied for 2023, with an estimated total support value of about VNĐ196 trillion (US$8.16 billion), including VNĐ121 trillion worth of extending tax and fee payment deadlines and about VNĐ75 trillion worth of tax and fee exemptions and reductions.

It also suggested a 2 per cent reduction in the value-added tax (VAT) from 1 July until 31 December, for most goods items that are imposed a 10 per cent VAT rate. With this measure, the reduction of VAT is estimated to be worth about VNĐ24 trillion.

In addition, the ministry submitted to the Government and the National Assembly Standing Committee for approval a resolution on environmental protection tax rates for petrol, oil, and lubricants, effective from 1 January until 31 December 2023, which is expected to reduce state budget revenue by approximately VNĐ38 trillion.

Regarding solutions for 2024, the ministry will continue to consider extending the reduction of environmental 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, during the first nine months, the State Bank of Việt Nam made four consecutive reductions in interest rates to support production and trade and promote economic growth. — VNS