Keep prices capped on airlines and textbooks

SGGPO June 18, 2023 13:58

The Government agrees with the Standing Committee of the National Assembly on the contents of the acceptance and explanation of the draft Law on Prices (amended) in the direction of not including milk products for the elderly and pork in the list of goods and services subject to price stabilization in the draft law.

The government explained that it is necessary to regulate price ceilings to protect the interests of consumers and low-income people to have access to airlines.

The Government has just sent a report to the National Assembly Standing Committee (NASC) on the reception, explanation, and revision of the draft Law on Prices (draft). This draft law will be voted on by the National Assembly on June 19, the first day of the second phase, the 5th session of the National Assembly.

Previously, on June 12, after the National Assembly discussed in the hall, the Standing Committee of the National Assembly gave opinions on a number of issues of different opinions in the draft.

In the report dated June 17, the Government agreed with the Standing Committee of the National Assembly on the contents of receiving and explaining the draft Law on Prices (amended) in the direction of not including milk products for the elderly and pork in the list of goods and services subject to price stabilization in the draft law.

The Government also plans to set prices for “domestic air passenger transport services” and textbooks in the form of maximum prices (ceiling prices). During the discussion in the hall, in addition to the proposal to completely remove ceiling and floor prices for domestic air passenger transport services, some deputies supported the draft law's option of regulating ceiling prices for this special service/item.

In addition, there are opinions suggesting that the draft Law clearly stipulates that only domestic air passenger transport services in economy class are on the list of goods and services whose prices are set by the State; while for business class and premium economy class, aviation enterprises will set their own prices according to market mechanisms.

The government explained that it is necessary to maintain price ceilings to protect the interests of consumers and low-income people to have access to airlines, diversify and thereby reduce social costs, promoting socio-economic development.

Currently, there are 6 domestic airlines, the competition of domestic airlines needs to regulate price ceilings to ensure State management, because the State has always shared with these businesses. For example, in the past few years, the State has reduced 70% of environmental tax on aviation fuel to support solving difficulties for businesses.

Source