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NEDA endorses EO cutting e-vehicle tariff to zero  

Louella Desiderio, Alexis Romero - The Philippine Star
NEDA endorses EO cutting e-vehicle tariff to zero   
The EO also aims to expand market sources and encourage consumers to consider acquiring e-vehicles, improve energy security by reducing dependence on imported fuel, the NEDA said in a statement.
STAR / File

MANILA, Philippines — The National Economic and Development Authority (NEDA) Board endorsed yesterday an executive order temporarily reducing the tariff rates on certain electric vehicles to zero percent to develop the industry and address the impact of climate change.

The board endorsed the tariff cut on certain e-vehicles and their parts and components during the board’s meeting yesterday, its first under President Marcos.

“We want to encourage the adoption, the use of e-vehicles because that will address pollution issues and, of course, adaptations to climate change; and we believe that’s the future,” Socioeconomic Planning Secretary Arsenio Balisacan said at a press briefing in Malacañang.

“But more importantly, we want to be part of the value chain globally in this drive to get to these new industries, new growth drivers. And hopefully, we can develop our own industries, and this reduction in tariff is part of that building up of ecosystem,” he added.

The EO also aims to expand market sources and encourage consumers to consider acquiring e-vehicles, improve energy security by reducing dependence on imported fuel, the NEDA said in a statement.

The order will modify tariff rates on certain e-vehicles like passenger cars, buses, mini-buses, vans, trucks, motorcycles, tricycles, scooters and bicycles, including their parts and components. It will reduce the most favored nation tariff rates to zero percent for five years on completely built up units of certain e-vehicles, except for hybrid-type vehicles. The order will also implement tariff modification on certain parts and components of e-vehicles from five percent to one percent for five years.

“As of now, the hybrid will not be affected by this change in the tariff rates. But as we said, we will review the performance of this reform after one year to see if there is a need to also include the hybrid,” Balisacan said.

The board will review the tariff modification a year after its implementation to assess its impact on the development of the e-vehicle industry ecosystem.

Balisacan did not provide estimates of revenue loss resulting from the EO but claimed it won’t be that much.

The board also approved NEDA’s guidelines for processing public-private partnership proposals.

The new procedures seek to harmonize the review and approval of the NEDA board and the Investment Coordination Committee. The process also covers the preparation and submission of government agencies of PPP projects with the joint evaluation of the NEDA Secretariat, the PPP Center, and the finance department.

The guidelines also include the updated list of documentary requirements for solicited and unsolicited PPP proposals, NEDA said.

The NEDA board also approved a new project funded through official development assistance as well as changes on five ongoing projects.
Approved was the P11.42-billion Philippine Fisheries and Coastal Resiliency (FishCoRe) project of the Bureau of Fisheries and Aquatic Resources (BFAR). The project aims to enhance the management of fishery resources and improve the value of production of fisheries in select fisheries management areas. It also seeks to address the problems in the fishery sector, reduce poverty incidence and ensure food security.

At the meeting, Marcos, also the chairman of the NEDA board, cited projections stating that a few decades from now, there would be more saltwater fish cultivation as a result of overfishing.

“So we have to get into the industry. We’ve been pushing it since we started using fingerlings to the Pangasinan aquaculture,” Marcos said.

“For some reason aquaculture is not flourishing, it is not developing. That’s why this is important for me. I think this is where — if not all, it will be part of our food supply. It will give very good income for our fisherfolk,” he added.

The seven-year investment will support the implementation of reforms in fishery and aquaculture management in the country.

FishCoRe’s components include supporting the development and implementation of appropriate fisheries management policies, establishing support facilities for the rehabilitation of coastal and maritime habitats, and improving institutional capacities for strengthened enforcement.

ODA funding

Of the P11.2 billion project cost, P9.6 billion will come from official development assistance to be provided by the World Bank. The remaining P660.6 million would be funded by the government through the BFAR, and P1.16 billion from private sector partners and beneficiary groups or cooperatives.

A total of 354,905 registered fisherfolk in 24 provinces with a coastal and marine area of about 32 million hectares are seen to benefit from the project, which is also expected to create 26,877 jobs.

Also approved was the request of the transportation department for the use of savings, change in scope, and loan validity extension for the first phase of the maritime safety capability improvement project, as well as its request for 19-month loan validity extension for the new communications, navigation, surveillance/air traffic management systems development project.

The maritime safety capability improvement project involves the acquisition of 10 multi-role response vessels to boost the Philippine Coast Guard’s response capability during coastal maritime incidents.

The new communications, navigation, surveillance/air traffic management systems development project, meanwhile, involves the construction of the Manila ATM Automation System and the Manila ATM Center Building in Pasay City, and the installation of communications and surveillance equipment in 10 radar sites.

The board also approved the request of the public works department to extend by 12 months the implementation period and the validity of the loan for the Samar Pacific Coastal Road project.

It also approved the request for change in scope of works, increase in cost, and reallocation of contingency cost to civil works category for integrated disaster risk reduction and climate change adaptation measures in low-lying areas of Pampanga Bay project.

The Samar Pacific Coastal Road project involves the construction of 11.30 kilometers of the unpaved section of the road and the construction of three bridges with a total length of 261 linear meters.  The project in Pampanga Bay, meanwhile, seeks to maximize drainage efficiency, minimize flood damage to properties, and improve trading and market activities in the towns of Macabebe, Masantol, Minalin and Sto. Tomas.

The request for change in scope for the Philippine Competition Commission (PCC)’s capacity building to foster competition project was also approved. The project is designed to strengthen the institutional and individual capacities of PCC and other agencies with competition-related mandates.

NEDA

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