INDUSTRY group Electric Vehicle Association of the Philippines (EVAP) announced backing the removal of import duties for two-wheeled vehicles, saying the move would make electric vehicles (EVs) more affordable and help the country achieve its goal of reducing greenhouse gas emissions.
EVAP President Edmund Araga said the association has been working “tirelessly” to promote and advance the adoption of EVs in the country.
EVAP’s statement issued last Tuesday read that its advocacy has always been zero-tariff for all EVs, especially 2-wheeled vehicles. The group excludes e-Jeeps and e-Trikes as EVAP said these have local manufacturing and assembly.
“EVap has been working closely with the government and other stakeholders to create a more favorable environment for EVs in the country,” the group said in a statement on Tuesday.
In particular, EVAP said it has been advocating for the implementation of supportive policies, such as tax incentives and charging infrastructure development, to encourage the adoption of electric vehicles.
The group also noted that it supports the position of the Department of Trade and Industry’s (DTI) to scrap import tariffs for e-Motorcycles.
The alteration of the tariff for 2-wheeled EVs was ushered by Executive Order 12 (series of 2023) issued in January by Malacañang.
However, under the motorcycles classification, only kick scooters, self-balancing cycles, pocket motorcycles and bicycles with auxiliary motors not exceeding 250 watts and with a maximum speed of 25 kilometers per hour have zero import duties while electric motorcycles are still subject to a 30-percent tariff rate.
However, Consumer Advocate Louie C. Montemar said the EO 12 is discriminatory and should be amended so that tax breaks given to owners of EVs could be enjoyed by Filipinos from the working class. (See https://businessmirror.com.ph/2023/02/16/palace-urged-to-widen-scope-of-eo-on-ev-tax-incentives/)
“The current EO is discriminatory because it covers only four-wheeled vehicles. It does not cover the majority of the working class, many of whom use 2-wheeled and 3-wheeled vehicles, or even public utility jeepneys,” Montemar, co-convenor of Bantay Konsyumer, Kalsada, Kuryente, has said.