Trade and Industry (DTI) Secretary Alfredo Pascual said the agency will consider Mitsubishi Motors Philippines Corp. (MMPC)'s position to include hybrid electric vehicles (EVs) in the government's zero or reduced tariff policy.
MMPC officials have stated that they want hybrid and plug-in hybrid EVs included in the tariff incentives for the benefit of consumer. They have also cited the Electric Vehicle Industry Development Act (EVIDA) which does not exclude hybrid EVs from its definition.
“We will consider their arguments, of course. Kaya nga as in-explain natin na yung (That's why as we explained the) motivation for lifting the tariff on electric vehicles is very clear. It is to increase the car population with the electric engines for purposes of encouraging the setting up of charging stations,” Pascual told reporters at the sidelines of the Gawad Yamang Isip Awards on April 29.
He said the committee will still meet to discuss the most-favored nation (MFN) tariff rates for imported EVs, their parts and components, which are subject to review a year after the implementation of Executive Order (EO) No. 12.
The review includes the determination of hybrid and two-wheel EVs' inclusions in the MFN tariff incentive.
It could be recalled that in March this year, Pascual said that DTI was leaning on excluding hybrids in the policy, citing the agency's objective of prioritizing the entry and increase of pure EVs in the country.
"To be able to have an EV population in the country, kailangan mo muna ng (you first need a) charging station. If there are enough EVs that will patronize the charging station, kaya yun ang inuna namin (that's what we'll prioritize)," he said.
However, Pascual noted that they are discussing the possibility of expanding their objective on lifting tariffs for EVs.
"Ngayon (Now), we are going to broaden our scope of our aspirations. Baka merong lugar (There may be a place for it) but I cannot speculate now because this is a committee work," he said.
Even back in 2022, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) has voiced its support for the inclusion of all EVs in the MFN zero tariff scheme.
Meanwhile, the Electric Vehicle Association of the Philippines (EVAP) has maintained its position on limiting the zero tariff privilege to pure EVs only.