NEDA mulls extension of reduced duties to e-motorcycles, hybrid vehicles

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  • The National Economic and Development Authority and other agencies initiated talks on the potential expansion of an executive order providing temporary reduced import duties on electric vehicles to also cover e-motorcycles and hybrid vehicles
  • EO No. 12 series of 2023 temporarily reduced to zero the rates of import duty on certain EVs and their parts and components for five years to help boost the country’s EV market
  • A year after the EO 12’s implementation, NEDA Secretary Arsenio Balisacan said a public hearing to review EO 12 will be called by the Tariff Commission

The National Economic and Development Authority (NEDA) and other relevant agencies have initiated discussions on the potential expansion of an executive order providing temporary reduced import duties to electric vehicles (EVs) to also cover e-motorcycles and hybrid vehicles.

EO No. 12 series of 2023, which took effect on February 20, 2023, temporarily cut 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 encourage consumers to consider EVs as a cleaner and greener transportation option.

The most-favored nation tariff rates on completely built up units of certain EVs, except for hybrid-type EVs, is zero.

E-motorcycles, on the other hand, are still subject to a 30% tariff rate.

A year after the EO’s implementation, NEDA Secretary Arsenio Balisacan in a statement said a public hearing to review EO 12 will be called by the Tariff Commission.

Balisacan said the review should follow the tariff modification process under the Customs Modernization and Tariff Act, and will be presented to the Committee on Tariff and Related Matters and the NEDA Board.

Interested parties are asked to participate in the public hearing and share their insights on the implementation of the proposed policy, which he said “aims to enhance the country’s energy security as we strive for social and economic transformation in the coming years.”

The review will consider all the views and comments of stakeholders, taking into account current market conditions. The review also aims to ensure that policy objectives of EO 12 are met by further encouraging the adoption of EVs and fostering the growth of the domestic EV market.

Under 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.