Auto, EV players welcome possible tariff relief for hybrid, e-motorcycles

MANILA, Philippines — Automotive firms and electric vehicle (EV) players  welcomed yesterday the potential expansion of the list of vehicles that can enjoy lower tariffs to include hybrid vehicles and e-motorcycles currently being studied by the government, saying that their inclusion  may promote the shift to more environment-friendly transport options.

In a Viber message, Chamber of Automotive Manufacturers of the Philippines Inc. president Rommel Gutierrez said  the group sees the government’s review of Executive Order 12, which reduced import duties of certain EVs and parts and components, as a positive development.

“To achieve the objective of vehicle electrification in the country, the EO needs to be extended and adopt a multiple pathway approach to achieve the desired volume target of electrified vehicles on the road,” he said.

Last Tuesday, the National Economic and Development Authority (NEDA) announced it has started discussions with other agencies on the potential expansion of EO 12 to include e-motorcycles and hybrid vehicles.

It also said the Tariff Commission would conduct a public hearing on the matter.

EO 12, which took effect on Feb. 20, 2023, temporarily cut the import duty on certain EVs and their parts and components to zero from the previous five to 30 percent for a period of five years.

Under the EO, the NEDA has been tasked to review and provide recommendations to the President on the modified tariff rates one year after its implementation.

Gutierrez said the EO’s coverage must be expanded to include hybrid electric vehicles (HEVs) as this would boost EV use.

He said the inclusion of HEVs in the EO coverage could lead to more affordable hybrid vehicles and more HEV models becoming available in the market.

“Since its introduction in the country, HEVs have been gaining market acceptance as motor vehicle users start to embrace hybrid technology and the benefits it offers to the motorists and the environment,” he said.

For his part, EV Association of the Philippines president Edmund Araga said in a Viber message that the group wants the government to include e-motorcycles in EO 12’s coverage.

“We are still very vocal that we would like to appeal in considering the two-wheel vehicles would be included to a zero tariff rate in terms of importation so as to proliferate the number of EVs in the Philippine setting,” he said.

He said the government could conduct a review and check the import performance of two-wheel vehicles after the lowered tariffs are implemented.

While no date has been set yet for the public hearing, the NEDA urged interested parties to participate and share their insights on the implementation of the policy aimed at enhancing the country’s energy security.

The NEDA said the review would consider all the views and comments of stakeholders, while taking into account the current market conditions.

“The review aims to ensure that we meet the policy objectives of EO 12 by further encouraging the adoption of EVs and fostering the growth of the domestic EV market,” the NEDA said.