BIZ BUZZ: Toyota cheers tax break for hybrids
The protracted debate over whether hybrid electric vehicles (EV) should be entitled to tax breaks has ended with the Marcos administration’s decision to extend the zero-tariff policy under Executive Order No. 12 to these vehicles, as well as e-motorcycles and e-bicycles.
EO 12 which President Marcos signed in January last year slashed import duties on electric vehicles to zero until 2028, from 5 to 30 percent.
Perhaps no company is happier about this development than Toyota Motor Philippines (TMP), which dominates the hybrid e-vehicle market.
As Josephine Villanueva, first vice president for Corporate Affairs of TMP, said: “We welcome the EO.”
No surprise there as out of the 5,518 electrified vehicles sold by the industry in the first four months, 3,869 were hybrid vehicles bearing the Toyota and Lexus brands, based on data from the Chamber of Automotive Manufacturers of the Philippines.
With the tax-free entry, it stands to reason that sales of these hybrid vehicles—which are gaining ground among those who want to be greener but do not want to deal with “range anxiety” from using fully electric vehicles – will accelerate with the prospect of friendlier prices.
Initially, hybrid vehicles – which use both an internal combustion engine and an electric motor for propulsion– were not included, apparently due to the strong lobby among those who want the EO to be confined to full EVs.
But with the recently approved EO, hybrid believers can chalk up a major policy win for their camp. — Tina Arceo-Dumlao
Green minds come together
Distribution utility Manila Electric Co. (Meralco) of tycoon Manuel V. Pangilinan and the Japanese Chamber of Commerce & Industry of the Philippines Inc. (Jccipi) have partnered to advance the country’s energy sector.
The collaboration between Meralco and JCCIPI will revolve around sustainable, innovative, and energy-efficient solutions in the local energy scene.
“Meralco can provide expertise in the energy sector while JCCPI can contribute technological advancement and investment. This collaboration can result in sustainable energy solutions,” Meralco Head of Enterprise-Commercial and Conglomerates Bernice Gretchel Garcia–Rama said.
“Through this partnership, we aim to harness the power of innovative technology from Japanese companies, coupled with Meralco’s expertise in the energy sector, to drive forward sustainable solutions in the Philippines,” JCCIPI vice president Nobuo Fujii said.
Both parties vowed to continue working together in developing environmental, social, and governance (ESG) training programs, conducting workshops and seminars, and implementing more initiatives to drive energy efficiency, waste reduction, and social responsibility of Japanese businesses in the country.
Fujii said the chamber would continue exploring new avenues for sustainable development as well as promoting energy efficiency and waste reduction.
For its part, Meralco is implementing various plans to attain a just, orderly, and affordable transition to clean energy by sourcing 1,500 megawatts of renewable energy, developing 1,500 MW RE projects, and speeding up its drive to “greenify” its transportation fleet by shifting 25 percent of its vehicles to electric by 2030.
Likewise, it is scaling up its smart grid program to achieve higher efficiency, have better demand response, and accommodate more renewable energy in its distribution network. — Jordeene B. Lagare
