Prices of goods and services assessed by the State will not be revised up

	Tax percentage in petroleum prices lower than gerneral average, says Ministry of Finance
	Reducing the impact of gasoline prices on the price level
	Monitor supply and demand, stabilize market prices, control inflation

The market price level fluctuated and increased in the first two months of 2022. Photo: Thu Diu.

The price of many essential items such as food and petroleum has increased while low-income people must reduce their spending due to the Covid-19 pandemic, causing a risk of inflation.

Responding to this issue, the Ministry of Finance said that the market price level in the first two months of 2022 increased. In addition to the annual effects due to the Lunar New Year, the market has suffered from the increase in the price of energy products on the world market, including the prices of petroleum and gas.

The price of energy and fuel products have the greatest impact on CPI in the first two months, of which the domestic gas prices increased from February 1 after decreasing in the previous month; the retail price of petroleum products in the country rose in four management terms in the first two months of the year.

In addition, the prices of some products for Covid-19 prevention and control such as test kits surged.

The price of many goods and services was revised down due to the impact of reducing VAT from 10% to 8% from February 1 under Government Decree 15/2022/ND-CP, thereby contributing to reducing significant pressure on the price level.

The supply of essential consumer goods and food in the country has risen, meeting people’s demand, so the prices only inched up before and after the Lunar New Year, then gradually returned to normal.

It is forecast that some factors will put pressure on the price level in March and the remaining months of 2022.

The price of many raw materials and strategic materials will still suffer from the increasing price trend in the world and the demand for investment and consumption in the domestic market when the economy recovers, such as the price of petroleum, gas, construction materials, fertilizers, animal feed and tourism services.

Pork prices may increase if the supply does not meet demand, as well as the development of African swine fever. Risks of natural disasters, epidemics and adverse weather during the year may cause difficulties for production activities and increase the prices of goods and services.

However, current policies to support economic recovery also contribute to reducing pressure on the price level, including policies on exemption and reduction for taxes and fees that play a key role in stabilizing prices and controlling inflation; the abundant supply of consumer goods, food in the market; stable prices of telecommunications and postal services, or launching of discount programs for some customers.

According to the Ministry of Finance, based on market price movements in the first two months of the year and forecasts for the year, the implementation of the inflation control target for the whole year 2022 still faces many risks.

Therefore, the Ministry of Finance will continue to closely coordinate with ministries, government agencies and local governments to take drastic measures on price management and administration, stabilizing market prices, especially for essential consumer goods and services; comply with the direction of the Deputy Prime Minister on price management.

The ministry will actively monitor supply and demand, market prices of important and essential commodities, especially those that tend to increase in price such as petroleum, gas, and construction materials. It will strengthen coordination in executing price management and control solutions, thereby, stabilizing market prices, preventing imbalance of goods supply and demand, strictly handling cases of abusing policies and holidays or the Lunar New Year to increase prices.

The ministry will closely monitor the price of petroleum and major raw materials for domestic production which are forecast to have high fluctuations in the world market to provide management and control measures to stabilize the market.

The Ministry will submit tax solutions to the Government under the direction of the Prime Minister in Official Dispatch 160/CD-TTg.

The Ministry of Finance will not revise the prices of goods and services assessed by the State, the adjustment of items according to the roadmap must be carefully assessed in terms of the impacts on the CPI of the second quarter to ensure space for controlling inflation for the whole year.

The ministry continues to expedite the price inspection and promptly handle violations; promotes dissemination on policies and measures to stabilize prices, control inflation, stabilize the macro-economy, and ensure social security, contributing to creating consensus in society to minimize the impact of price increases due to market sentiment and inflation expectations.