EO 12 coverage expansion to include electric motorcycles pushed

Several advocacy groups are urging Malacañang to amend an existing executive order granting import incentives to include electric motorcycles as an affordable alternative for Filipinos to shift to zero emission commuting.

Think tank Stratbase ADR Institute president Victor Andres “Dindo” Manhit in a posted statement said “EO 12 as it is now , excludes motorcycles from import tax exemptions but covers vehicles with four wheels – which are afforded only by higher-income individuals.”

“Millions of working Filipinos opt for two and three-wheel vehicles because of their income limitations. They are the most vulnerable to the increase in prices of fuel and other basic commodities. Making electric motorcycles more affordable means no more worries on spiking petroleum prices and pollution free transportation for the masses,” Manhit said.

According to Philippine Business for Environmental Stewardship (PBEST) secretary general Felix Vitangcol,   Executive Order 12, which grants tax incentives to those purchasing four-wheeled electric vehicles, is a step in the right direction — but is lacking.

“It is as if they forgot the glaring fact that motorcycles significantly contribute to air pollution in Metro Manila,” said Vitangcol in a statement.

According to a DENR report, 80 percent of air pollution comes from petroleum fueled vehicles while 20 percent is from other sources. The 2022 Statista data counts 7.81 million registered motorcycles and tricycles in the Philippines.

EO 12, signed by President Ferdinand Marcos Jr. in January this year, lowers the tariff rate for certain types of electric vehicles,  from  a range of 5 to 30 percent to zero percent import duty.

Marcos Jr. OKs temporary tariff cuts on imported e-vehicles, spare parts

Two-wheeled electric motorcycles, however, are still subject to a 30-percent import duty.

“It is true that electric-powered vehicles will correct air pollution, lessen our dependence on fossil fuels, and substantially reduce greenhouse gas emissions,” Vitangcol said.

“It is the government’s role to spearhead a shift to electric vehicles,” said Vitangcol. “EO 12 should be more inclusive, so that more Filipinos can access the more responsible, more environmentally viable option of commuting.”

Other consumer and industry groups  also clamor for zero import tax on electric motorcycles

Edmund Araga, president of the Electric Vehicle Association of the Philippines, acknowledges that the EO opens a very good opportunity for EV enthusiasts and advocates interested in owning one.

“Consumers will experience a wide array of models to choose from depending on their preferences,” Araga said, adding that EO12 will help increase the adoption of electric vehicles in the local market.

Tim Vargas, co-founder and chairman of Electric Kick Scooter Philippines, said in February that it was unfair that electric motorcycles were not granted the tax breaks that were extended to other EV types.

“The significant utilization of two-wheeled motorcycles along with the EV industry can contribute to enhancing the employment rate of the country,” Vargas said.

“Thus, the exclusion of electric motorcycles in EO12 should be clarified further and revisited.”

Advocacy group wants review of tax breaks for e-vehicles

Consumer rights group Bantay Konsyumer, Kalsada, Kuryente (BK3) also issued a statement appealing to the President to expand tax incentives granted to four-wheel electric vehicles to cover two- and three-wheel vehicles.

“Those who are already given tax perks are vehicle owners from the AB socio-economic bracket,” Louie Montemar, BK3 convenor, said in an earlier statement. “Correcting this exclusion is the right thing to do,”

Another consumer advocacy group, CitizenWatch Philippines also echoed the call for the EO’s expansion.

“Filipino motorists – whatever vehicle they drive – are aware that we need to resort to more sustainable means of powering their everyday activities, and to minimize pollution,” said Orlando Oxales, co-convenor of CW.

“But they are constrained by the prohibitive costs of these ‘green’ alternatives, thus consigning them to stick to the old, dirty, and inefficient transport modes,” he said.

“The policy is discriminatory because it limits the benefits to higher-income individuals who can afford four-wheel cars,” CW added.

“The Palace has the authority to quickly rectify this damaging flaw in EO 12. It should do so already.”