MANILA (UPDATE) — The National Economic and Development Authority (NEDA) has endorsed to President Ferdinand Marcos, Jr. an executive order (EO) that will modify tariff rates for electric vehicles (EVs), its chief said on Thursday.
Socioeconomic Planning Secretary Arsenio Balisacan said the EO would temporarily reduce to 0 percent the tariff rates from the previous range of 5 to 7 percent.
Parts and components of e-vehicles will be covered by the tariff adjustments, but hybrid cars will be exempted for now, noted the official. Electric vehicles covered by the EO include passenger cars, buses, vans, trucks, motorcycles, and scooters.
"The EO will temporarily reduce the Most Favored Nation tariff rates to 0 percent for 5 years and Completely Built-Up units of certain e-vehicles except for hybrid-type," Balisacan told reporters in a Palace briefing.
"It will also implement tariff modification in certain parts and components of EVs from 5 percent to 1 percent for 5 years," he added.
The tariff modification is set to be implemented for 5 years, but NEDA will review its execution after one year for any modifications.
It will take effect 15 days after publication on the Official Gazette following Marcos Jr's approval.
The NEDA chief emphasized that the looming EO wants to "expand market sources and encourage consumers to consider acquiring electric vehicle."
This would help in the growth of the sector and make these vehicles more accessible to Filipinos. It also seeks to improve energy security by reducing the country's dependence on imported fuel and promote the sector's growth.
"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," he said.
"This reduction in tariffs is part of that building of the ecosystem."
Balisacan added that government wanted to encourage the adoption and use of e-vehicles to "address pollution issues and of course our... adaptation to climate change."
Manufacturers and industry leaders last month invited motorists to make a big shift and go electric, especially now that gasoline prices keep on rising.
The Land Transportation Office (LTO) said almost 20,000 e-vehicles have been registered as of 2021, based on their record.
— With a report from Joyce Balancio, ABS-CBN News