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DTI complies with NEDA decision on reduced tariffs for hybrid EVs

Business | Trade & Industry

DTI complies with NEDA decision on reduced tariffs for hybrid EVs

By Khriscielle Yalao

The Department of Trade and Industry (DTI) has released a statement welcoming the decision of National Economic and Development Authority (NEDA) to include hybrid electric vehicles (EVs) in Executive Order (EO) 12 despite airing its opposition months prior.

EO 12 sets the temporary reduction of the most-favored nation (MFN) tariff rates for imported EVs, aligned with the Electric Vehicle Industry Development Act (EVIDA). The original EO only covered pure four-wheel EVs, their parts, and components while it excluded hybrid and two-wheel EVs from the tariff cut.

The NEDA Board approved the recommendation of the Tariff Committee to modify duty rates for more types of EVs, including "battery e-tricycles and quadricycles; battery, hybrid electric and plug-in hybrid electric jeepneys and buses; and hybrid and plug-in hybrid electric cars and trucks."

"This move to maintain zero tariffs on a wider range of EVs and hybrid EVs until 2028 aligns with our country's commitment to green transition and promotes the adoption of eco-friendly transportation," said DTI Secretary Alfredo Pascual.

"By making EVs and hybrid EVs more accessible and affordable, the government not only fosters sustainable mobility but also contributes to cleaner air and a healthier environment," he added.

In March, Pascual shared that the agency was leaning towards focusing the reduced tariffs on pure EVs only in order to encourage more purchases for pure EVs and facilitate the construction of more EV charging stations nationwide.

"We reduced the tariff for pure EVs. The objective is we have a critical mass of EVs to make setting up charging stations a feasible operation. If hybrid EVs come in, it will not contribute to the attainment of that objective since hybrid does not need charging stations," said Pascual in a media briefing on March 8.

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