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Manila Bulletin devider Philippines devider National devider DTI backs import tariff removal on electric vehicles

DTI backs import tariff removal on electric vehicles

Published Apr 24, 2023 04:42 am
The Department of Trade and Industry (DTI) is backing the move to temporarily remove  import tariffs for electric vehicles (EVs) for a period of five years in a bid to encourage more Filipinos to use them.  DTI Secretary Alfredo Pascual said the tariff removal on electric vehicles will also help bring down its prices amid calls to reduce carbon emission which is considered as one of the contributors to climate change. "DTI proposed the temporary removal of tariff on EVs for a period of five years...[the department) believes that the measure will help develop the local EV market and encourage consumers to consider shifting to EVs for a cleaner and greener transportation option," said Pascual. "The temporary elimination of tariffs is seen to drive down the purchase of electric vehicles, thereby generating increased demand and encouraging investments in electric vehicle charging stations," he added. The DTI’s move, however, was opposed by two vehicle associations which pushed for the  exclusion of e-motorcycles during the Tariff Commission's public hearing on May 12 last year.  Several sectors supporting the e-motorcycle and vehicle market saw the move as unjustified, saying motorcycles hold the majority among motorists in the country. The Philippine government in January released Executive Order No. 12 series of 2023 which modifies the tariff rates for certain EVs and its components to zero percent, with the exclusion of e-motorcycles which is still subject to 30 percent tariff rate.  An increasing clamor for inclusivity in the coverage of EO12 has since followed its issuance.  Think-tank Stratbase ADR Institute President Dindo Manhit believes that EO 12 should be revised to include e-motorcycles in the tax break as it is 'discriminatory' and rich-favored. On Feb. 21 next year,  EO12 shall be subject to review by the National Economic and Development Authority wherein recommendations for possible amendment shall be submitted for approval of the President.
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