Inclusion of 2-wheeled EVs in 0% tariff rate urged

DOST says e-tricycles one of the agency's mobility areas of coverage

At a glance

  • Department of Science and Technology Renato Solidum, Jr. thinks that 2-wheeled electric vehicles in the grant of tax breaks. (Photo courtesy of DOST)

A non-profit organization believes that the government should amend the tax incentives for electric vehicles as it 'lacks inclusivity.'

According to Philippine Business for Environmental Stewardship Secretary General Felix Jose Vitangcol, there seems to be a problem in the EO since only a limited portion of the population can afford to buy four-wheeled vehicles.

This was after the Palace released Executive Order No. 12 series of 2023 which modified the tariff rates for EVs to help mainstream its use in the country.

EO12 lowered the tariff rate for certain EV types ranging from five to 30 percent to zero percent import duty.

Under the EO, EVs such as kick scooters, pocket motorcycles, and self-balancing cycles are included in the tax breaks. On the other hand, two-wheeled electric motorcycles are still subject to a 30 percent import duty.

“Only more affluent Filipinos – indeed a limited segment of the population – can afford to buy four-wheel vehicles, and hence enjoy these incentives,” Vitangcol said.

The organization reiterated that most motorists in the country are using two or three-wheeled vehicles including public utility jeepneys.

“It is also they who are already perennially burdened by the soaring prices of basic goods and hampered by their limited income to provide for their families,” he added.

PBEST also mentioned that more Filipinos should be encouraged to shift to alternative energy regardless of their socio-economic status and the types of their vehicles. Vitangcol also said that it is the government’s role to spearhead the country’s shift to electric vehicles as it will lessen the nation’s dependence on fossil fuels.

In relation to this, Department of Science and Technology (DOST) Sec. Renato Solidum, Jr. also thinks that this should be the case.

"Yes I think it should be included as these tricycles and motorbikes are common modes of transport in many areas," he said in a text message to Manila Bulletin.

"One of the mobility areas of coverage for R&D of DOST is e-tricycles," he added.

EO 12 aims to help Filipinos to adapt to the usage of e-vehicles while decarbonizing and reducing the carbon emissions caused by fueled-run vehicles.

To help mainstream the use of EVs and the development of infrastructures that can cater to the industry, Republic Act No. 11697 commonly known as the Electric Vehicle Industry Development Act was passed along with other landmark policies.