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Manila Bulletin devider Philippines devider National devider House leader's proposed EVIDA tweak to boost allure of 2-wheeled EVs 

House leader's proposed EVIDA tweak to boost allure of 2-wheeled EVs 

Published Nov 27, 2023 06:22 am

At A Glance

  • Puwersa ng Bayaning Atleta (PBA) Party-list Rep. Margarita "Migs" Nograles has sought to amend certain provisions of the Electric Vehicle Industry Development Act (EVIDA), which excluded two-wheeled electric vehicles (EVs) from certain import tariff exemptions. 

FB_IMG_1670344405306.jpgPuwersa ng Bayaning Atleta (PBA) Party-list Rep. Margarita "Migs" Nograles

 

 

 

 

 

 

Puwersa ng Bayaning Atleta (PBA) Party-list Rep. Margarita "Migs" Nograles has sought to amend certain provisions of the Electric Vehicle Industry Development Act (EVIDA), which excluded two-wheeled electric vehicles (EVs) from certain import tariff exemptions. 

For this purpose, Nograles, an assistant majority leader in the House of Representatives, filed House Bill (HB) No.9574 in the current 19th Congress for this purpose. 

EVIDA was a law enacted in July last year to promote and accelerate the development, manufacturing, utilization, and commercialization of EVs in the country. It recognizes the importance of EVs in reducing dependence on fossil fuels, mitigating climate change, and promoting sustainable transportation options. 

But despite the huge share of two-wheeled EVs vis-à-vis four-wheeled EVs in the market, Nograles noted that the current tariff structure imposes higher upfront costs on electric two wheelers, making them less economically attractive to consumers compared to conventional gasoline-powered two-wheelers. 

"This situation creates a significant barrier to the growth of the [EV] industry, impeding environmental sustainability efforts and hindering the transition to clean transportation," Nograles said. 

Her proposed amendment to EVIDA Act aims to achieve the following objectives: First, the temporary decrease of the Most Favored Nation (MFN) tariff rates. The amendment pursues the introduction of a temporary reduction in the MFN tariff rates for all EVs. 

Lowering the tariff burden enhances the affordability and competitiveness of EVs, more particularly two-wheelers, making them a more attractive option for consumers. The temporary nature of this reduction recognizes the need to provide immediate support to the industry while allowing for a reassessment of tariff rates in the future. 

Second, a call for a zero percent MFN tariff rate. In addition to the temporary

reduction, the amendment proposes the demand for a zero percent MFN tariff rate on two-wheeled EVs for the next five years. 

"This striving measure aims to eradicate tariff-related barriers entirely, signaling a strong commitment to promoting the growth of the electric vehicle market. By demanding a zero percent MFN tariff rate, the amendment aligns with global efforts to incentivize the adoption of clean and sustainable transportation,” Nograles explained. 

Nograles also said the proposed amendment aims to briefly reduce tariff rates, and demands a zero percent MFN tariff rate for two-wheeled EVs. 

The Mindanao-based solon said her proposal will serve as a market stimulus and affect industry growth. Lower tariff rates and a zero percent MFN tariff rate incentivizes consumers to choose electric two-wheelers over conventional vehicles, leading to increased market demand. 

She said that this, in turn, will stimulate investment in the EV industry, promote the establishment of manufacturing facilities that will create employment opportunities, and drives technological advancements. 

The accelerated adoption of two-wheeled EVs wil also contribute to a reduction in greenhouse gas emissions, she said.

 

Related Tags

puwersa ng bayaning atleta EVIDA electric vehicle margarita migs Nograles
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