THE early passage of an enabling law mandating short-term tariff suspension on electric vehicles is needed to boost the development of a budding industry, said Senator Sherwin T. Gatchalian.
As principal author of the proposed Electric Vehicle Industry Development Act (EVIDA), Gatchalian projects the short-term tariff suspension on electric vehicles (EVs) is needed to boost the development of the budding industry.
He recalled the President signing Executive Order 12 that removed tariffs on EVs in a bid to lower prices and make these vehicles more affordable to local consumers.
However, the senator noted that the tariff suspension—set to last for five years—was intended to increase the adoption of EV usage and reduce carbon emissions.
Gatchalian said that “the short-term protection will give time for local manufacturers to transition to e-vehicles,” reminding that “we expect that tariff exemption of EVs will lead the country to usher in an EV ecosystem that is vibrant, responsive, and dynamic.”
However, the senator clarified through a statement that the tariff suspension will not cover 2-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,” he added.
Gatchalian admits he understood the reason behind the exemption from tariff suspension of 2-wheel motorcycles, noting “this would protect local manufacturers of tricycles and enable the local manufacturing industry to develop.”
The senator said he’s confident that the exemption on 2-wheel motorcycles will provide appropriate support for local manufacturers of tricycles, acknowledging that tricycles continue to be a popular mode of transportation for many Filipinos across the country.
Recalling that it was enacted into law last year, he asserted that Republic Act 11697 (EV Industry Development Act) 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.
Gatchalian adds that the law likewise provided for the establishment of the National EV Development Plan, that outlines the goals and strategies of the Philippines’ EV industry development.