More EVs to benefit from zero tariffs

MANILA, Philippines — More electric vehicles (EVs) including e-motorcycles and e-bikes can enjoy lower tariffs until 2028 after the National Economic and Development Authority (NEDA) Board approved the expansion of the tariff coverage under Executive Order  (EO) 12.

The move is meant to encourage the shift to environment-friendly vehicles.

The NEDA Board, chaired by President Marcos, likewise approved four infrastructure projects.

Under EO 12, which took effect in February 2023, import duties of certain EVs and parts and components were reduced to zero from five to 30 percent, previously, for a period of five years.

The NEDA Board agreed to maintain the most favored nation rate at zero on 34 tariff lines of battery electric vehicles (BEV) currently covered under EO 12 until 2028.

In addition, the NEDA Board expanded the list of articles with tariff reduction to include e-motorcycles and e-bicycles, as well as nickel metal hydride accumulators.

Also included in the expanded tariff coverage are battery e-tricycles and quadricycles; battery, hybrid EV (HEV) and plug-in hybrid EV (PHEV) jeepneys/buses; HEV and PHEV cars and trucks; as well as completely knocked down EVs for all types of vehicles.

“EO 12 is designed to stimulate the EV market in the country, support the transition to emerging technologies, reduce our transport system’s reliance on fossil fuels, and reduce greenhouse gas emissions attributed to road transport. By encouraging consumers to adopt EVs, we are promoting a cleaner, more resilient and more environmentally friendly transportation alternative,” NEDA Secretary Arsenio Balisacan said.

For his part, EV Association of the Philippines president Edmund Araga said in a Viber message, the group sees the expansion of EO 12 to two-wheeled vehicles as a welcome development.

He said the inclusion of HEVs, however,  defeats the purpose of prioritizing BEVs and PHEVs in competing with ICE (internal combustion engines) in terms of cost and proliferation of EV industry infrastructure.

“It is not fair to say that consumers will be more convinced to switch to electric in using HEVs as it may just lead to consume barrels of fuels being imported by the government and that awareness in using combustion engine is still on top of their mind in buying their next vehicle,” he said, adding it would be difficult for BEVs to prosper as it cannot compete with HEVs in terms of pricing.

Aside from the tariff-related decisions, the NEDA Board also approved the P2.75 billion Facility for Accelerating Studies for Infrastructure or FAST-Infra Project, which will initially focus on the transportation sector by providing funding support for the formulation of master plans and pipeline of projects aimed at establishing stronger national and regional connectivity.

The NEDA Board also approved the Infrastructure for Safer and Resilient Schools Project, which will involve the repair, rehabilitation, retrofitting and reconstruction of damaged school facilities in Metro Manila.