President Ferdinand "Bongbong" Marcos Jr. has approved the temporary zero-tariff policy for electric vehicles and spare parts in an attempt to encourage consumers to shift to "cleaner and greener" transportation.
Malacañang disclosed that Marcos signed Executive Order (EO) No.12 on Jan. 13, over a month after it was recommended by the National Economic Development Authority.
Under the EO, import duty rates on electric vehicles, parts, and components under Republic Act (RA) No. 10863 or the Customs Modernization Act are temporarily modified to zero for a period of five years.
The move aims to "help boost the electronic vehicle market in the country, support the transition to emerging technologies, and encourage consumers to consider electric vehicles as a cleaner and greener transportation option."
Marcos said it is in line with RA No. 11697 or the “Electric Vehicle Industry Development Act,” which states that the state shall “ensure the country’s energy security and independence by reducing reliance on imported fuel for the transportation sector.”
“The state has the paramount obligation to protect the health and well-being of the people from hazards of pollution and greenhouse gases,” the EO read.
JUST IN: President Marcos approves the temporary cut of import duty on e-vehicles, spare parts to zero. @manilabulletin pic.twitter.com/WfdVUSNlO6
— Betheena Unite (@MB_unite) January 19, 2023
The move also intends to reduce pollution in the country.
The EO noted that the transportation sector is one of the largest sources of air pollution and energy-related greenhouse gas emissions in the country at 34 percent, with road transportation accounting for 80 percent of those emissions.
It was also noted that Section 1618 of RA No. 10863 empowers the President, in the interest of general welfare and national security and upon recommendation of the NEDA, to increase, reduce, or remove existing rates of import duty.
According to EO No. 12, the most-favored nation (MFN) tariff rates shall be subject to review after one year from the implementation of the order.
The NEDA is directed to submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter.
READ MORE: Zero-tariff policy for e-vehicles now up for Marcos’ approval—NEDA chief