NEDA Board extends zero duty of EVs until 2028

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NEDA Board extends zero duty of EVs until 2028
  • The National Economic and Development Authority Board extended until 2028 zero duties of electric vehicles under Executive Order No. 12
  • The Board also expanded the list of articles with zero duty under EO 12 to include e-motorcycles and e-bicycles, battery e-tricycles and quadricycles; battery, hybrid and plug-in hybrid EV jeepneys/buses

The National Economic and Development Authority (NEDA) Board extended until 2028 zero duties of electric vehicles (EVs) under Executive Order No. 12.

The Board also expanded coverage of EVs to include e-motorcycles and hybrid EVs.

READ: Marcos oks zero tariff on EVs

During its 16th meeting on May 15, the NEDA Board approved recommendations of the Committee on Tariff and Related Matters (CTRM) based on the review of EO 12 series of 2023, which temporarily reduced the rates of import duty on certain EVs and their parts and components for five years to help boost the country’s EV market and help encourage consumers to consider EVs as a cleaner and greener transportation option.

The Board temporarily cut to zero the most-favored nation (MFN) tariff rates on completely built-up units of certain EVs, except for hybrid-type EVs.

It also agreed to maintain the MFN rate at zero until 2028 on 34 tariff lines of battery EVs currently covered under EO 12. It expanded the list of articles with reduced duty under EO 12 to include e-motorcycles and e-bicycles, nickel metal hydride accumulators, and other types of EVs, particularly battery e-tricycles and quadricycles; battery, hybrid EV (HEV) and plug-in hybrid EV (PHEV) jeepneys/buses; and HEV and PHEV cars and trucks; as well as completely knocked down (CKD) EVs for all types of vehicles.

The tariffs on the added articles will also be reduced to zero until 2028.

“Executive Order No. 12 is designed to stimulate the electric vehicle market in the country, support the transition to emerging technologies, reduce our transport system’s reliance on fossil fuels, and reduce greenhouse gas emissions attributed to road transport,” NEDA secretary Arsenio Balisacan said in a statement.

Under Republic Act No. 11697, or the Electric Vehicle Industry Development Act, the state shall “ensure the country’s energy security and independence by reducing reliance on imported fuel for the transportation sector.”

The transportation sector, EO 12 said, “is one of the country’s largest sources of air pollution and energy-related greenhouse gas emissions at 34%, with road transportation accounting for 80% of those emissions.”

Under the Department of Energy’s Comprehensive Roadmap for the Electric Vehicle Industry, the government aims to increase the utilization of EVs in the domestic market and position the Philippine EV industry to become a producer and exporter of EVs by 2040.

President Ferdinand Marcos Jr., who chairs the NEDA Board, instructed the CTRM to conduct an annual review of the rates to ensure timeliness, applicability, and impact on the sectors concerned due to the modification in duties of EVs.

The NEDA board also approved the Facility for Accelerating Studies for Infrastructure (FAST-Infra) Project with the aim of driving robust infrastructure development aligned with the country’s sustainable development goals.

With a total cost of P2.75 billion, FAST-Infra will initially focus on the transportation sector by providing fund support in formulating high quality transportation master plans and develop a robust pipeline of big- ticket transportation projects that would strengthen both national and regional connectivity.

The NEDA Board also approved the extension in the implementation period of the P8.41 billion Light Rail Transit Line 1 (LRT 1) East Extension Project, which includes the construction of additional two stations—the Marikina and Antipolo stations.

While the project was already completed in 2021 and is currently in full operation, NEDA said the request for an extension in the implementation period intends to facilitate full disbursement to project contractors and consultants and ensure the quality of the project until the end of its defects liability period in December 2024.