Prepare scenarios to control inflation

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Deputy Minister of Finance Nguyen Duc Chi at the press conference.

At the press conference, Mr Nguyen Van Truyen, Deputy Director of the Price Management Department (Ministry of Finance), said CPI increased by 0.4%over the previous month and 3.94% year-on-year. Average CPI in September rose by 2.73% compared with the same period.

According to the Deputy Director, the space to control inflation under the target of not more than 4% set by the National Assembly and the Government is relatively high.

Regarding factors putting pressure to increase the price, the representative of the Price Management Department said that from now until the end of the year, fuel and energy prices might fluctuate in an upward trend, which will significantly impact domestic prices.

The global inflationary pressure will affect the supply chain of goods, and foods, putting pressure on the domestic price level. In addition, from now to the end of the year, some localities will be suffered from natural disasters, storms and floods, causing a price increase.

However, besides factors that may increase the price, some factors reduce pressure on the price increase. The Government and the Price Management Steering Committee will keep stable prices for goods fixed by the State. The State implements the policy on maintaining macroeconomic stability and controlling inflation.

At the conference, Deputy Minister of Finance Nguyen Duc Chi said that the Government's goal is to implement solutions to achieve the inflation target.

In the first nine months of 2022, inflation control is always on the agenda of ministries, sectors and the Government. Accordingly, ministries and sectors focus their resources on providing solutions to control inflation, including fiscal policy, implementation of exemption, reduction, extension of taxes and fees, and supporting production and consumers.

Deputy Minister Nguyen Duc Chi said that the Ministry of Finance had prepared scenarios for petroleum products. The ministry not only proposes to reduce the environmental protection tax on petroleum products but also suggests reducing preferential import tax and VAT, SCT to respond and keep the price of the critical items. Besides, the ministry pays attention to the prices of agricultural products, food, medical services, and education.

"We must be proactive in preparing scenarios to effectively regulate the fiscal and monetary policies with other policies to achieve the inflation control target set by the National Assembly," said Deputy Minister Nguyen Duc Chi.

Regarding the results of revenue collection since the portal for foreign suppliers was launched, Mr Dang Ngoc Minh, Deputy Director General of the General Department of Taxation, said that Vietnam is one of the four leading countries in the ASEAN region to apply the e-tax payment to foreign suppliers, affirming the right to tax collection of Vietnam for e-commerce business activities, platform-based business.

After more than six months of implementation, 36 foreign suppliers have registered, declared and paid taxes through the portal. There are six large foreign suppliers, accounting for 90% of the market share of revenue of e-commerce services doing business on cross-border digital platforms in Vietnam, who have implemented tax registration, tax declaration and tax payment in Vietnam with a total tax amount of tens of millions of USD, EUR, equivalent to hundreds of billions of VND.

It is estimated that from the beginning of the year, the foreign suppliers have paid about VND1trillion, including about VND500 billion paid via the portal. This shows that Vietnam's tax policy and management have met with international practices, ensuring fairness and transparency for organizations and businesses worldwide when doing business in Vietnam.