Tariff suspension on e-vehicles pushed in Philippines

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A short-term suspension of tariffs on electric vehicles (EVs) is necessary to support the development of the industry, Sen. Sherwin Gatchalian said.

'The short-term protection will give time for local manufacturers to transition to e-vehicles,' said Gatchalian, the principal author of the Electric Vehicle Industry Development Act (EVIDA). 'We expect that tariff exemption of EVs will lead the country to usher in an EV ecosystem that is vibrant, responsive and dynamic.'

The President signed in January Executive Order 12, which removed tariffs on EVs in a bid to lower its prices and make them more affordable to local consumers.

The tariff suspension, which will last for five years, is intended to increase the adoption of EV usage and reduce carbon emissions.

The tariff suspension, however, will not cover two-wheeled electric motorcycles in a bid to protect local manufacturers of tricycles.

Specifically, only kick scooters, self-balancing cycles, bicycles and pocket motorcycles with auxiliary motors not exceeding 250 watts and with a maximum speed of 25 kilometers per hour have zero percent import duties, while electric motorcycles are still subject to a 30 percent tariff rate.

Enacted into law last year, the EVIDA law is aimed at setting up the country to become a regional hub for EV production and assembly, incentivizing manufacturers, suppliers as well as buyers of EVs.