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Manila Bulletin devider Philippines devider National devider 2-wheeled EV's inclusion in tax breaks beneficial - int'l think tank

2-wheeled EV's inclusion in tax breaks beneficial - int'l think tank

Published Mar 6, 2023 02:50 pm

International think-tank and research organization Stratbase ADR Institute believes that electric motorcycles' inclusion in tariff reductions under Executive Order No. 12 would be beneficial to the public.

(Photo courtesy of DOST-PCIEERD)

Under EO12, several types of EVs have received tariff reductions and removal from the previous rates ranging from five to 30 percent.

Stratbase President Prof. Dindo Manhit said that the EO should be modified as workers and students use motorcycles to commute to work. At the same time, four-wheeled vehicles are often only afforded by higher-income individuals.

Meanwhile, Sen. Sherwin Gatchalian has mentioned in a recent statement that the newly-imposed tax breaks for certain types of electric vehicles will help Filipinos adapt to the usage of EVs and help reduce carbon emissions.

Gatchalian, the principal author of the Republic Act 11697 or the Electric Vehicle Industry Development Act (EVIDA), said that the modified tariff rates will help make EVs more affordable for local consumers.

Under EO12, several types of EVs have received tariff reductions and removal from the previous rates ranging from five to 30 percent. According to him, it halts the import duty of electric vehicles (EVs) for the next five years to help mainstream EV usage and create a new industry that will support it in the country.

Under the directive, e-motorcycles are still subject to a 30 percent tariff while the taxes for kick scooters, pocket motorcycles, and self-balancing cycles were reduced to zero.

On the other hand, in a text message to Manila Bulletin on Monday, March 6, Department of Science and Technology (DOST) Secretary Renato Solidum stated that one of the major programs of the DOST is on transport mobility.

He said that the agency's efforts are to support the transportation modernization program, the development of the local transport industry, address transport and energy issues, and climate change mitigation.

For its part, DOST said that support of e-mobility, prototype fast charging facilities have been developed and R&D on batteries is being implemented.

"A component of this is the development of prototype electric vehicles like e-tricycle, e-jeepneys, and e-boats together with academic and industry partners," he added.

DOST has already declared that it is continuously prioritizing an ecosystem of e-mobility solutions for the country's transportation sector since fuel prices have reached new highs.

In 2022, DOST said that the agency has invested over P321 million in e-mobility-related projects to modernize and uplift the transportation sector and reduce greenhouse gas emissions to save the environment.

In support of e-mobility, Solidum said that prototype fast charging facilities have been developed and R&D on batteries is being implemented.

Related Tags

Electric vehicles DOST Secretary Renato Solidum Jr. Department of Science and Technology EV DOST E-mobility Department of Science and Technology (DOST)
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