MANILA — The Electric Vehicle Association of the Philippines (EVAP) welcomes the approval of the National Economic and Development Authority (NEDA) Board of the expansion of tax breaks for electric vehicles (EVs) in the country.

EVAP President Edmund Araga told ABS-CBN News, this will boost more sales of EVs and will encourage more clients to shift into electric cars.

“Actually, the nice thing about this is that there were a lot of players that are increasing their sales. We’re happy and we appreciate the expansion of the tariff as to EO 12," Araga said.

But Araga also said the expansion of zero tariff rates for EVs to hybrid cars may affect sales of pure EVs.

"Sana hindi na na-include ang hybrid kasi we cannot compete on the pricing,” Araga said.

According to EVAP, based on their data, for the year 2023, more hybrid cars were sold even though EVs sales also increased.

President Ferdinand Marcos Jr.’s administration wants half of cars on Philippine roads to be electric vehicles by 2040.

Araga said this will be more feasible if government agencies will lead in using EVs.

NEDA Board approved the expansion of tax breaks for 2 and 3-wheeled battery vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid vehicles (PHEVs) until 2028.

The NEDA Board is chaired by the President himself.

EO 12 signed by the President in February 2023 temporarily eliminates tariffs for EVs and their components for five years or until 2028. Said EO did not include two and 3-wheeled EVs, HEVs, and PHEVs.

In a statement, Energy Secretary Raphael Lotilla said that by including a wider range of electric and hybrid vehicles, the government is simplifying environmentally friendly choices for consumers while also fostering innovation and growth within the country’s electric vehicle industry program.

According to data from the Land Transportation Office (LTO), as of 2023, there were 7,515 EVs among the 14,269,414 registered land transport vehicles in the country.

Ismael Borlagdan, sales manager of MG Libis in Quezon City said they welcome the decision of the government in expanding the zero tariff rates for EVs.

He said many are still hesitant to shift to EVs, but with the support of the government this may soon change. 

Borlagdan hopes to increase MG's sales from the current 4-5 units monthly.