CRI听力:Food Price Stabilization during Festival

The country's fresh vegetable sellers gained value-added tax exemption from January 1 of this year, the Ministry of Finance announced on Monday, as the government continues with its efforts to stabilize food prices.

According to a statement by the Ministry of Finance, wholesale and retail sellers of vegetables, excluding canned produce, have been exempted from paying value-added tax during the distribution process, which is thought to have led to about 15 billion yuan in tax savings.

Senior officer at the Ministry of Finance, Gao Sheng had this to say.

"Fourteen categories covering several hundred kinds of vegetables are included in this exemption campaign. They basically cover all of the people's daily needs. The value added tax on vegetable planting has already been exempted, so this time we aim to reduce the burden on distribution."

This decision comes after a statement by the State Council last month said that value-added tax on vegetables could be eliminated to reduce distribution costs.

The tax break will help to lower costs especially for wholesale vegetable traders, and benefit consumers who ultimately have to pay the value-added tax.

Value added tax exemption is just one of the methods that the central government has taken to stabilize food prices before and during the Spring Festival. The head of the Ministry of Commerce, Cheng Deming says the efforts being made are intended to allay inflationary pressure.

"As a rule, commodity prices will go upwards during the Spring Festival, but we try to stabilize the prices by creating a huge commodity supply."

The Ministry of Commerce has put eight thousand tons of beef and mutton in the markets of Xinjiang, Gansu, Ningxia, Qinghai and Inner Mongolia provinces to guarantee commodity supplies. Local governments will also inject reserved grain, oil and vegetables into the market. Chen Deming says food prices will remain stable during the festival.

"I am quite confident about what we've done. More than 99% of the commodities in the market enjoy an ample supply. This can also guarantee good quality."

Chen says the ministry begins making emergency plans related to vegetables, milk products and oil supplies during festivals in order to stabilize food prices. He says that the government will figure out viable methods to stimulate consumption.

For CRI, I'm Zhongqiu.