ECCP calls for import tax exemption for all EVs

The European Chamber of Commerce of the Philippines (ECCP) has called on the government to exempt from import taxes electric vehicles (EVs) from all countries instead of limiting it to special trading partners.

In a Nov. 25 letter sent to the Department of Energy, the business group highlighted that import duties should also be lifted for EVs coming from outside the Association of Southeast Asian Nations (Asean).

“One of the most common means of accelerating EV adoption in developing countries like the Philippines is subsidizing vehicle prices. As such, the ECCP Automotive Committee reiterates the call for lowering or even the complete removal of the duties on EV imports to accelerate the country’s shift to electric vehicles,” read ECCP’s letter.

Modified order

The business group sent the letter a day after the National Economic and Development Authority board, chaired by President Marcos, endorsed on Nov. 24 a modified executive order that will exempt completely built units of EVs imported from most favored nations.

The local industry association of electric vehicle firms has cheered the latest move by the government to temporarily remove the taxes for EVs for a period of five years, citing it as one of the major steps in mainstreaming more environment-friendly vehicles.

The Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association project that the market share of electric vehicles will grow by more than three times compared to 2021, reaching 2,246 units sold by the end of the year.

In 2021, the market share of electrified vehicles—which include hybrid electric vehicles, plug-in hybrid electric vehicles and battery electric vehicles—stood at .31 percent, equivalent to 810 units.

The ECCP also said they support the recent consideration for the Comprehensive Roadmap for the Electric Vehicle Industry to have zero-duty for cars and SUVs in the household sector until 2035.

“To supplement this initiative, general tariff exemptions should also be extended to other types of EVs in the Philippines,” the ECCP said further in the letter.

The ECCP also recommended the adoption of the European standards for adapters, which is the Combined Charging System Type 2, which it said is more aligned with the rest of the Asean EV market.