DTI chief backs temporary removal of tariff for e-vehicles
FILE PHOTO: Department of Trade and Industry Secretary Alfredo Pascual attends the Senate committee on foreign relations’ public hearing Monday, December 12, 2022. Bibo Nueva España/Senate PRIB
MANILA, Philippines — Department of Trade and Industry (DTI) Secretary Alfredo Pascual is supporting calls for the temporary removal of electric vehicles (EV) import tariffs for five years.
Pascual said this move is part of the DTI’s mandate to promote electric vehicles, lower their prices, and reduce the country’s oil consumption.
“The temporary elimination of tariffs is seen to drive down the purchase price of EVs, thereby generating increased demand and encouraging investments in EV charging stations,” he said in a statement Monday.
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He added that the agency believes that the temporary removal of EV import tariffs will help boost the local market of EVs and encourage consumers to consider shifting to using them for a greener transportation option.
But Pascual said such a proposal is opposed by the Electric Vehicle Association of the Philippines (EVAP) and the Motorcycle Development Program Participants Association (MDPPA), which requested the exclusion of e-jeepneys, e-tricycles, and e-motorcycles in the tariff modification coverage.
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“As stated in the findings of the TC (Tariff Commission), the tariffs on e-jeepneys and e-tricycles shall be retained at 20 percent or 30 percent as there are local firms that produce these items, and to give existing domestic producers sufficient time to adjust,” the DTI chief noted.
On November 24, 2022, the National Economic Development Authority (NEDA) Board approved the Executive Order (EO) that will implement tariff modification on certain EVs and their parts and components.
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“Under Section 2 of EO No. 12, the tariff measure or cuts, including its coverage, shall be subject to review after one year from the implementation of the order,” Pascual said.
He explained that the NEDA submitted the review findings to the Office of the President and will be reviewed on February 21 next year.
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