Labor leader solon bats for inclusion of electric motorcycles in zero % import tariff

MANILA, Philippines – House Deputy Speaker and labor leader Raymond Mendoza has pitched for the inclusion of electric motorcycles in the recently issued Executive Order No. 12, which imposes 0% tariff on electric vehicles.

Mendoza, president of the Trade Union Congress of the Philippines, made the pitch for tax cuts as he hailed President Ferdinand Marcos Jr. for issuing EO12, which seeks to enhance the effectiveness of gov’t laws to decarbonize and reduce greenhouse gas emissions in the country.

The TUCP stalwart and representative in Congress said the move will bolster the electric vehicle industry “because the newly-signed EO12, aside from its clean-air intent, its tax incentives will make investing easier and help businesses to flourish which will translate to more employment opportunities for Filipinos.”

Executive Order No. 12 temporarily modifies the tariff rate for the importation of electric vehicles. 

Prior to its signing, electrically propelled vehicles are subject to import duties ranging from 5% to 30%. Under EO12, these import duties have been cut to zero percent, effectively halting it for the next five years. 

However, Deputy Speaker Mendoza pointed out that EO12 may have overlooked the two-wheeled electric motorcycles in the grant for tax breaks.

"It appears that under the Presidential issuance, not all types of electric vehicles are granted 0% tax rate. Only kick scooters, self-balancing cycle, pocket motorcycle, as well as bicycles with an auxiliary electric motor not exceeding 250w and with maximum speed not exceeding 25 km/h are included in the tariff cut," he quipped.

He added: "How about the two-wheeled electric motorcycles? Or those with auxiliary electric motor exceeding 250w and with maximum speed exceeding 25km/h? There is no substantial distinction between the articles currently imposed with zero percent tariff and the electric motorcycles which are still subject to 30% import duty. I hope this matter will be revisited.”

Since the start of the Marcos administration, TUCP has been pushing for its Sustainable Industrial Policy program to be included in the national employment creation strategy. 

Under this program, an industry promotion strategy shall be formulated that will anchor on identifying the priority sectors and matching them with available skills for each region, based on their respective comparative advantage.

"This tax incentive on electric vehicles is a good springboard for industry promotion and to generate new jobs for our people especially since the growing market demand will encourage businesses to expand. But we can't harness the opportunities if we do not have a fully developed industry, so if we want this tariff reduction to really make an impact in the local industry, we have to utilize everything that will serve the purpose, including all kinds of electric vehicles,” explained the TUCP stalwart.

The TUCP is the country’s biggest confederation of labor federations, composed of 23 labor federations with a membership of some 480,000. As the country's biggest labor group, TUCP has been pushing for more job opportunities stemming from millions of unemployed and underemployed Filipinos.