Tax breaks on e-motorcycles lauded

MANILA, Philippines — An international think tank and a consumer advocacy group commended the recent approval of the National Economic Development Authority (NEDA) to finally include two and three-wheeled electric vehicles (EVs) in government tax incentives under Executive Order 12.

“We welcome the inclusion of e-motorcycles in the list of electric vehicles given temporary import tax breaks to accelerate the shift to green transportation,” according to   Stratbase Institute president Victor Andres Manhit.

“It is a responsive policy that will make electric-powered vehicles more accessible to the vast majority of the riding public who need to make daily commutes to work or mobility for their livelihood activities,” he said.

The EO, issued on Jan. 13, 2023, which temporarily suspends the collection of  import duties on electric vehicles, their parts and components, supports the transition to emerging green technologies and encourages more consumer adoption of electric vehicles as an  environment friendly transportation option.

According to Manhit, a greater number of Filipinos have been using motorcycles to navigate the roads given the sorry state of public transportation and the worsening traffic situation.

As of 2022, motorcycles remain the most popular vehicle type in the Philippines, with 7.81 million registered vehicles according to a Statista study.

“Now that the policy gap of EO 12 has been resolved, the extensive use of EVs will be a major factor in reducing carbon emissions and pollutants that pose serious health risks and aggravates global warming,” Manhit said.

On the other hand, consumer advocacy group CitizenWatch Philippines, co-convenor lawyer Christopher “Kit” Belmonte said, “most motorcycles and other vehicles currently in use are powered by polluting fossil fuel.”

Statista also revealed that the transportation sector alone emitted 35.42 million tons of carbon dioxide in 2022.

Belmonte added that  “more Filipinos would be enticed to make the clean shift if  e-motorcycles and electric vehicles are more affordable and more charging stations are available.”

The clamor to expand the tariff coverage of EO12 has been endorsed by numerous groups, including the Bantay Konsyumer, Kalsada, Kuryente, Philippine Business for Environmental Stewardship, Electric Kick Scooter  of the Philippines, the Electric Vehicle Association of the Philippines, Electric Vehicle Industry Development Act , the Chamber of Automotive Manufacturers of the Philippines Inc., the Tariff Commission and other government agencies.

Belmonte said that now that an inclusive EV policy would be implemented, the next step is for the government to incentivize the building of a nationwide network of EV charging stations in public and private places.

“The government and the private sector can work together to develop an EV charging infrastructure that can be accessed in parking spaces and even in people’s residences,”  Belmonte said.

“The participation of distribution utilities will be critical in upgrading the country’s power infrastructure to be EV ready.” We hope that there will be no further delay in the execution of the expanded EO12 on EV importation,” he said.