Aims to achieve price stabilization during the coming Lunar New Year

the price of a number of consumer goods, that are not in the list of prices determined by the State, have put pressure on the market price level. Source: Internet

According to the Ministry of Finance, the Covid-19 pandemic has had a huge impact on the economy for the vast majority of 2021. The price management of a number of essential goods and services has also been under great pressure, and as such it is very difficult to control inflation in these times.

Also, according to the Ministry of Finance, the results of the average consumer price index (CPI) in ten months of 2021 was at 1.81%. This, along with the movement of the basic price level in the price management scenario, makes for favorable conditions to create a fiscal space and control inflation for the whole year of 2021, following the target set by the National Assembly and the Government.

However, the Ministry of Finance said that the price of a number of consumer goods, that are not in the list of prices determined by the State, have put pressure on the market price level, especially in the remaining months of the year and Lunar New Year.

Implementing the direction of the Government, the Deputy Prime Minister, Head of the Steering Committee for Price Management, is responsible for controlling inflation in the year of 2022 and stabilizing market prices during the Lunar New Year. The Minister of Finance requested the heads of units and agencies of all relevant departments to closely follow market price movements, regularly make specific forecasts and monitor market prices. This is especially important around Tet, in order to balance the market.

At the same time, the prevention of smuggling, trade fraud and counterfeit goods will be heightened, thereby avoiding abnormal fluctuations affecting socio-economic life. This will strictly control tax declarations, finalizations and refunds. Along with that, the Deputy Prime Minister will be permitted to actively use national reserves to promptly respond to the situations.

The Minister of Finance requested the Price Management Department to coordinate with relevant ministries' units to grasp information and closely monitor developments in supply and demand, especially for some essential consumer goods. Additionally, they will advise the Ministry about appropriate price management and administration measures in order to stabilize the market price levels and control inflation.

At the same time, promoting the synthetization of information and analyzing and forecasting of market price movements will proactively develop a strong price management scenario in 2022. For example, calculating the impact of factors that can affect the economy in general and inflation in particular, focusing on assessing the impacts from the pandemic situation, as well as natural disasters that may occur. On that basis, proactively advising and proposing appropriate operating measures will be necessary.

The Minister of Finance also requested the Finance Department coordinate with other departments, agencies and sectors in proactively advising the Provincial People's Committee to strengthen the management, administration and price stabilization of their areas.

Accordingly, they will be monitoring the market situation closely in the time around Tet, especially for large consumer goods such as rice, meat, and fruit and vegetables. They’ll also scrutinize passenger transportation services, sightseeing, festivals and other essential industries related to production.

This will help the Provincial People's Committee to advise on measures that stabilize prices complying with the provisions of the law, to promptly deliver goods of national reserve in accordance with regulations and to have a plan to regulate and support the circulation of goods reasonably, whilst ensuring sufficient supply of essential goods for people. Especially in areas where natural disasters and the Covid-19 pandemic take place.

Units must also effectively supervise the implementation of price declarations and price listing measures; publicize information on prices and strictly control the observance of goods priced by the State, especially for public goods and services.

Simultaneously, the units need to actively coordinate with relevant departments, agencies and units to speed up the inspection of regulations on management of prices, taxes, fees and charges in the area, especially for essential goods and services. They will need to strictly handle cases of violations, those who take advantage of holidays and peak seasons to increase freight charges at an unreasonably high level. Also, there are cases of publishing incorrect information, causing instability in the market and prices.

Furthermore, coordinating with functional units to effectively fight against smuggling, counterfeit goods and trade fraud will be necessary. As well as fighting tax evasion and reducing tax arrears.

The Ministry of Finance also suggested that central agencies and organizations located in their localities are responsible for coordinating with the Department of Finance and other departments to implement price management and stabilization in the locality.

Accordingly, the Customs Department must strengthen many areas and handle violations better. They must coordinate with relevant units in promoting anti-smuggling, preventing trade fraud and counterfeiting activities, focusing on key routes and areas under their management.

Regional State Reserve Departments must promptly deliver national reserve goods following the Prime Minister's decision, in order to ensure social security in the period around Tet holiday for areas affected by natural disasters and the pandemic.

The Tax Department must review sources of revenues in the locality and control the tax declaration of enterprises and individuals in order to collect taxes, fees, and other revenues correctly. They will strictly manage tax refunds and strengthen inspections on tax evasion, tax arrears and transfer pricing.

The State Treasury must focus on directing and strengthening the control of the State budget expenditure through the State treasury, resolutely refusing cases where payment is not eligible by law.

The Minister of Finance also assigned the General Department of Vietnam Customs to gather human forces to perform cargo clearance and release, in order to avoid congestion at border gates during Tet holiday. They will also be required to closely coordinate with the Border Guard and Coast Guard forces in patrolling land and sea borders.

The General Department of Taxation calls for professional units and Tax Departments of provinces and centrally-run cities to strengthen inspections against tax loss for businesses showing signs of high risks and strengthen invoice management in order to prevent the purchase and sale of invoices, as well as the use of illegal invoices to legalize smuggled goods and tax evasion.