E-motorcycles inclusion in import tax breaks to be considered, says NEDA chief

MANILA, Philippines – The inclusion of e-motorcycles in the import tariff incentives will take center stage once the mandatory review of Executive Order No.12 series of 2023 takes effect nine months from now, an economics official said.

National Economic and Development Authority chief Arsenio Balisacan said that the agency, which is tasked to review the executive issuance, will focus, among other concerns, on the probable inclusion of two- and three-wheel electric vehicles (EVs) in the import tariff exemption.

Balisacan’s statement was made in response to the mounting clamor of multi-sectoral stakeholders to include all types of EVs in the tax break.

EO12 was uploaded in the Official Gazette last January 19 and became effective on February 20, making it available for mandatory review starting February 21, 2024, or nine months from now.

Under the EO12, various EVs and their components received lower tariff rates from the previous 5% to 30% to now 0% import duty, with the exception of e-motorcycles as they are excluded from the tariff suspension and are still subject to 30% import duty.

According to Balisacan, the NEDA board, in Palace briefing in November 2022, endorsed a version of the EO modifying the tariff rate for EVs, which included e-motorcycles.

"We want to encourage the use of e-vehicles because that will address pollution issues and our adaptation to climate change and we believe that's the future," Balisacan said in the briefer.

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

Earlier, DTI said that EO12 will be subject to review one year from its implementation pursuant to the provisions of the issuance.

Meanwhile, think tank Statbase ADR Institute President Dindo Manhit believes that the revision and inclusion of e-motorcycles in the tax break will help Filipinos choose EVs and help the government with their goals toward sustainable transportation.

For his part, Electric Vehicle Association of the Philippines (EVAP) President Edmund Araga, who initially lobbied against the inclusion of e-trikes and e-jeeps in the EO, said that giving tax breaks for e-motorcycles will help electrify the transport of the country and develop a local industry for it.