Minister of Finance Ho Duc Phoc: reduction of petrol and oil prices requires comprehensive solutions

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Minister of Finance Ho Duc Phoc delivered a speech at the session. Photo: VNA

Mr. Ho Duc Phoc said the urgent task now is anti-inflation, because the prices of many input materials abroad are surging. In addition to solutions on monetary policy, fiscal policy, and price management, the restructuring and improvement of the production and business capacity of domestic enterprises, production of new products, and improvement of the income of people and businesses are important.

Facing comments on reducing taxes on petrol and oil, Minister Ho Duc Phuc stated; tax reduction is just one of many solutions to reduce petrol and oil prices, it is necessary to use comprehensive solutions. In fact, the tax rate in petrol and oil prices in many countries is about 45%, while in Vietnam, it only accounts for 29% - 30%. Recently, Vietnam has reduced 50% of green tax on petrol and oil. When reducing taxes, it is necessary to cut approved expenses.

"However, we will consider assessing the impact and report to the Government on the reduction of tax on petrol and oil," said the Minister.

He also noted that when the tax reduction poses problems such as petroleum smuggling. The reason is that currently the petrol and oil price in Vietnam is 11,000 VND/liter lower than it in Laos, 3,000 VND/liter lower than it in Cambodia. If the petrol and oil price in Vietnam is low, which may lead to smuggling to the surrounding countries, and Vietnam will face difficulties because of tax reduction. In addition, Minister Ho Duc Phoc said it is necessary to focus on boosting supply and increasing the capacity of Dung Quat and Nghi Son plants to meet domestic petroleum demand.

Previously, discussed in the National Assembly hall, many National Assembly deputies raised concerns about rising input prices, typically petrol and oil prices. According to Pham Van Hoa (Dong Thap deputy), domestic petrol and oil prices have continuously increased, affecting daily life, production and business. Stabilization of the domestic gasoline prices at the allowable level is essential for the development of production and business and people's daily life.

Similarly, in order to effectively implement the Socio-Economic Development Plan in 2022, especially in the last months of the year, Deputy Nguyen Dai Thang (Hung Yen province) asked the Government to direct ministries, Government agencies and local agencies to closely manage and monitor supply-demand movements, market prices of important and essential commodities to take appropriate solutions to stabilize the petrol and oil prices; forecast items and materials that are likely to fall on short-term and in the long-term insufficiency in order to have appropriate response policies.

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“Particularly for petroleum products, it is necessary to closely follow the world petrol and oil price movement, use the Petroleum Price Stabilization Fund at an appropriate level to flexibly manage the domestic petrol and oil prices, contributing to stabilizing the market, meeting the sufficient supply in the country. Besides, it is necessary to harmonize monetary and fiscal policies to control interest rates and regulate prices", said Nguyen Dai Thang.