Groups urge goverment to include e-motorcycles in tariff relief

MANILA, Philippines — Malacañang should amend an existing executive order granting import perks to include electric motorcycles as an affordable alternative for Filipinos to shift to zero emission commuting, consumer advocacy groups said.

“Executive Order 12, as it is now,  excludes motorcycles from import tax exemptions but covers vehicles with four wheels – which are afforded only by higher-income individuals,” said Dindo Manhit, president of think tank Stratbase ADR Institute.

“Millions of working Filipinos opt for two- and three-wheel vehicles because of their income limitations. They are the most vulnerable to the increase in prices of fuel and other basic commodities. Making electric motorcycles more affordable means no more worries on spiking petroleum prices, and a pollution-free transportation for the masses,” he said.

Felix Vitangcol, secretary general of Philippine Business for Environmental Stewardship (PBEST), said EO 12, which grants tax incentives to those purchasing four-wheeled e-vehicles, is a step in the right direction – but is lacking.

“It is as if they forgot the glaring fact that motorcycles significantly contribute to air pollution in Metro Manila,” he said.

EO 12, signed by President Marcos in January this year, lowers the tariff rate for certain types of e-vehicles, ranging from five to 30 percent, to zero percent import duty.

Two-wheeled e-motorcycles, however, are still subject to a 30-percent import duty.

“It is the government’s role to spearhead a shift to e-vehicles,” said Vitangcol. “EO 12 should be more inclusive, so that more Filipinos can access the more responsible, more environmentally viable option of commuting.”

Edmund Araga, president of the Electric Vehicle Association of the Philippines, acknowledges that the EO opens a very good opportunity for EV enthusiasts and advocates interested in owning one.

“Consumers will experience a wide array of models to choose from depending on their preferences,” Araga said, adding that EO 12 would help increase the adoption of e-vehicles in the local market.

Consumer rights group Bantay Konsyumer, Kalsada, Kuryente (BK3) also issued a statement appealing to the President to expand tax incentives granted to four-wheel e-vehicles to cover two- and three-wheeled vehicles.

“Those who are already given tax perks are vehicle owners from the AB socio-economic bracket,” Louie Montemar, BK3 convenor, said. “Correcting this exclusion is the right thing to do,”

CitizenWatch Philippines also echoed the call for the EO’s expansion.

“Filipino motorists – whatever vehicle they drive – are aware that we need to resort to more sustainable means of powering their everyday activities, and to minimize pollution,” said Orlando Oxales, co-convenor of CW.

“But they are constrained by the prohibitive costs of these ‘green’ alternatives, thus consigning them to stick to the old, dirty, and inefficient transport modes,” he said.

“The policy is discriminatory because it limits the benefits to higher-income individuals who can afford four-wheeled cars,” CW added.