EV industry hopeful to get import tariff incentives early next year

INQUIRER FILE PHOTO

MANILA, Philippines — The Department of Trade and Industry (DTI) said that e-motorcycles may probably get their much-awaited tax break next year, as the executive order that gives incentives to Electric Vehicles (EVs) is up for review nine months from now.

This, as Executive Order No. 12 series of 2023 — the issuance that modifies the tariff rate for EVs — was uploaded in the Official Gazette last January 19, and became effective on February 20, making it available for mandatory review starting February 21, 2024. 

READ: DTI chief backs temporary removal of tariff for e-vehicles

Under the EO, different types of EVs and their components have received tax breaks, with the exclusion of e-motorcycles which are still subject to a 30-percent tariff rate.

According to DTI, the agency initially endorsed a version of the EO where e-motorcycles are included in the tax incentives given by the Office of the President in support of the electrification of transportation sector.

“DTI believes that this measure will help develop the local EV market and encourage consumers to consider shifting to EVs for a cleaner and greener transportation option,” DTI Secretary Alfredo Pascual said in a statement.

Meanwhile, National Economic Development Authority (NEDA) chief Arsenio Balisacan also said that the agency will focus on the probable inclusion of e-motorcycles under EO 12 after stakeholders voiced out their concerns that it was “unfair” to leave them out.

Several stakeholders of the EV industry aired their concerns when e-motorcycles were not given tax breaks and called on the concerned government agencies to amend the executive issuance.

Electric Vehicle Association of the Philippines (EVAP) President Edmund Araga said that giving tax breaks for e-motorcycles will help electrify the transport industry in the country and develop a local industry for it.

International think tank Stratbase ADR Institute President, Prof. Dindo Manhit, has earlier stated that the revision and inclusion of e-motorcycles in the tax break will help Filipinos choose EVs and help the government with their goals toward sustainable transportation.