Proponents of electric vehicles in the country heaved a sigh of relief after they were assured that the process of review for the inclusion of two-wheeled vehicles in tax breaks has already started.

Citing statement from National Economic and Development Authority (NEDA) chief Arsenio Balisacan, coordination is now being made with the Tariff Commission and the Department of Trade and Industry (DTI) for the review of Executive Order No. 12, which had excluded two-wheeled electric vehicles from the tax breaks.

The review, according to Balicasan, covers the two-wheeled vehicles in the tax breaks accorded to four-wheeled e-vehicles. 

The DTI earlier said that the Philippines aims to go full on electric vehicles by 2040 and is set to limit the sale of internal engine combustion cars as part of its comprehensive plan to transition to what environmentalists foresee as “green traffic,” or a decarbonized road network in the country.

The plan was supported by environmentalists and clear air advocates, citing a report from the Statista Research Department which stated that the power production in the Philippines is still dominated by coal at 47.6 percent, followed by other fossils at 18 percent, and gas at 10.7 percent, which totals 76.3 percent.

Various types of renewable energy generation like wind, solar, bioenergy, hydro and other renewables share at 23.7 percent of the country's total power source.

The transportation sector, alone, in the country is responsible for emitting 31.54 million tons of carbon dioxide which contributes to climate change. As stated by IQAir, the rate of PM2.5 pollutants in Manila is twice the World Health Organization (WHO) annual air quality guideline value

WHO has been pushing to achieve the right air quality guideline value to minimize the health risk from pollutant exposure.

On the other hand, Executive Order No. 12 series of 2023 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 its use among Filipinos. 

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

The EV industry stakeholders and clean air advocates alike have since been urging the government to review the executive issuance to include two-wheeled electric vehicles such as e-motorcycles. 

Among the key amendments outlined in the bill is the redefinition of electric vehicles, modifying Section 4, Chapter 1 of Republic Act No. 11697, to include two-wheeled vehicles in the definition of electric vehicles. 

Meanwhile, the Land Transportation Office has recorded almost eight million units of motorcycles in their agency, which indicates that motorcycles are the most favored mode of transportation of motorists in the country.

Earlier, Albay 2nd District Rep. Joey Salceda has introduced House Bill No. 9573, seeking to amend the provisions of the EVIDA. The lawmaker from Bicol emphasized that 60 percent of electric vehicles in the country fall into the two-wheeled category, making their exclusion from tax incentives inequitable.