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President Ferdinand Marcos Jr. will sign an executive order cutting tariffs on electric vehicles to 0% for five years
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The EO will also implement tariff modification on certain EV parts and components from 5% to 1% for five years
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The EO will modify tariff rates on EVs such as passenger cars, buses, mini-buses, vans, trucks, motorcycles, tricycles, scooters, and bicycles, among others
President Ferdinand Marcos Jr. will sign an executive order removing the tariff on imported electric vehicles (EVs) as well as reducing tariff rates on certain EVs, parts and components, according to Socioeconomic Planning Secretary Arsenio Balisacan in a Palace briefing on Thursday.
The move is designed to encourage consumers to switch to these vehicles, improve energy security by reducing dependence on imported fuel, and promote the growth of the domestic EV industry ecosystem.
The EO will temporarily reduce the Most Favored Nation tariff rates to 0% for five years on completely built-up units of certain EVs, except for hybrid ones.
The government is currently imposing import duties of 5% to 30% on EVs.
The EO will also apply tariff modification on certain EV parts and components from 5% to 1% for five years.
For modification under the EO are tariff rates on EV passenger cars, buses, mini-buses, vans, trucks, motorcycles, tricycles, scooters, and bicycles, as well as EV parts and components, the National Economic and Development Authority (NEDA) said in a statement.
The NEDA Board indicated that the tariff adjustment will be reviewed after one year of implementation to assess its impact on the development of the EV industry ecosystem.
“We want to encourage the adoption, the use of e-vehicles because that will address pollution issues and, of course, adaptations to climate change; and we believe that’s the future. But more importantly, we want to be part of the value chain globally in this drive to get to these new industries, new growth drivers. And hopefully, we can develop our own industries, and this reduction in tariff is part of that building up of the ecosystem,” Balisacan, who also heads NEDA, said.
Current prices for passenger cars in the market range from ₱1.2 million to more than ₱4 million. E-motorcycles and e-scooters, which are popular among buyers, are priced from ₱13,000 to ₱100,000.
Republic Act 11697, or the Electric Vehicle Industry Development Act, lapsed into law this year. Under the new law, a Comprehensive Roadmap for the Electric Vehicle Industry will serve as a national development plan for the electric vehicle industry to accelerate the development, commercialization, and utilization of EVs in the country.
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