The expansion of the electric vehicle incentive program under Executive Order 12 will further enhance the ease of doing business, promote more sustainable investments, and generate more jobs in the area of green technology, Finance Secretary Ralph Recto said.
“This strategic move puts the Philippines at the forefront of green technology, attracting more sustainable investments. It will spur the creation of high-quality jobs, foster innovation, and offer Filipinos more eco-friendly vehicle choices. Ultimately, it will bring us closer to reaching our goal of reducing greenhouse gas emissions by 75% in 2030,” Recto said in a statement on Wednesday.
The National Economic and Development Authority Board chaired by President Ferdinand R. Marcos Jr. approved last May 15 the expansion of tariff exemptions on electric vehicles (EVs) to include e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, hybrid electric vehicles, and plug-in hybrid electric vehicles jeepneys or buses.
The tariffs on these articles shall be reduced to 0 percent until 2028.
The tariff exemptions include EV parts and components and completely knocked down EVs which could incentivize interested parties to assemble or even manufacture in the Philippines, deepening the manufacturing sector and generating quality employment.
The Department of Finance said the expansion will not only help make EVs more accessible and affordable to consumers but will also attract more investors to establish operations in the Philippines, covering manufacturing, research and development, and infrastructure development in the EV industry.
Aside from EO 12, the Electric Vehicle Industry Development Act, which took effect in April 2022, allows EV owners to enjoy exemptions from “number coding” road decongestion measures and are given priority registration and renewal with the Land Transportation Office.
EVs are also given a 30-percent excise tax discount on motor vehicle user charges, while hybrid vehicles are granted 15 percent off.
EVs are also issued a special type of license plate under the law. “All of these reforms are a testament to the President's commitment to roll out a red carpet for investors and the Philippines’ strong resolve to create a vibrant and sustainable EV ecosystem," Recto said.
"The policy environment for investments in the country has never been more open and liberalized than it is now. The Department of Finance will continue to act fast on measures that will further promote ease of doing business to attract more productivity-enhancing investments in the country,” he said. PNA
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