Groups advocating the use of electric vehicles in the country have welcomed the decision of the National Economic Development Authority (NEDA) to include two and three-wheeled electric vehicles in government tax breaks.
The NEDA decision is part of the expansion of the implementation of the Executive Order 12 that effectively removes tariffs on imported models, including e-motorcycles.
Since EO12 took effect in February 2023, EV industry leaders have been campaigning for the inclusion of e-motorcycles under the executive issuance, questioning its intent and demanding its inclusion once the review takes place.
Two of them, think tank Stratbase ADR Institute and advocacy network CitizenWatch Philippines, have been actively campaigning for tax breaks for e-motorcycles since 2023, noting their benefits to the country, environment, and economy once integrated into the country's traffic.
The Electric Kick Scooter (EKS) of the Philippines, the Electric Vehicle Association of the Philippines (EVAP), and other government agencies have also backed the removal of tariffs for e-motorcycles, based on their respective position papers sent to the Tariff Commission after its public hearing in March.
The approved version of the revised EO12 is now in the hands of NEDA Chairman and President Ferdinand “Bongbong” Marcos, Jr., for final approval and publication.
The expansion of the EO 12 was discussed during NEDA's 16th Board Meeting last week, particularly the proposal of the Committee on Tariff and Related Matters to expand its coverage until 2028.
The expanded version removes the tariff for e-motorcycles, e-bicycles, and nickel metal hydride accumulators.
“Executive Order No. 12 is designed to stimulate the electric vehicle (EV) market in the country, support the transition to emerging technologies, reduce our transport system’s reliance on fossil fuels, and reduce greenhouse gas emissions attributed to road transport," NEDA Secretary Arsenio Balisacan said in a statement posted on the agency’s website.
E-motorcycles’ zero emissions are one of their most emphasized traits, as the transportation sector alone is responsible for emitting 35.42 million tons of carbon dioxide in 2022, which contributes to climate change, data from Statista showed.
“By encouraging consumers to adopt EVs, we are promoting a cleaner, more resilient, and more environmentally friendly transportation alternative,” he added.
The Department of Energy also wants to increase the country's EV fleet by 50 percent, or an additional 2.4 million units, in hopes of making the green transportation sector help cut down the country’s 35.42 million tons of carbon dioxide emissions in 2022, which contributes to climate change, data from Statista showed.
EO12 was enacted to complement the Electric Vehicle Industry Development Act (EVIDA) to create an industry for EVs in the country and help reduce carbon emissions, in compliance with the Philippines' commitment to the Paris Agreement.
It modifies the tariff rates for EVs to help mainstream their use among Filipinos.