Stakeholder views to be considered in review of EV tax breaks, NEDA chief assures

MANILA, Philippines – In a move to initiate the review process of Executive Order No. 12, series of 2023, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said public hearings will start immediately to “carefully consider all the views of the industry stakeholders.”

The Tariff Commission, an agency under the NEDA, was tapped by Balisacan to conduct open discussions on the mandatory review with the stakeholders and environmentalists who have been long rooting for certain amendments to EO12.

In an official statement last March 5, the NEDA chief requested the TC to conduct public hearings for the review of the executive issuance that temporarily reduced the rates of import duty on certain electric vehicles, their parts and components for five years. 

"The review shall follow the tariff modification process under Section 1608 of the Customs Modernization and Tariff Act, and shall be presented to the Committee on Tariff and Related Matters and the NEDA Board," said Balisacan.

Under Section 1608 of the Tariff and Customs Code of the Philippines, otherwise known as the Flexible Clause, before any recommendation is submitted to the President by the NEDA, the TC shall first conduct an investigation and public hearings wherein interested parties shall be afforded the opportunity to be heard. 

As of this writing, however, no EV industry players claimed to have received details on the conduct of an investigation or public hearing relative to the mandatory EO12 review. 

This despite the mounting pressure on the government to amend EO12 to include electric motorcycles in the tax incentives, which were notably excluded from the list. 

Stakeholders have been advocating for the inclusion of electric motorcycles in the tax break citing their potential to significantly contribute to the government's goal of transitioning to a fully electric transportation system by 2040, as outlined by the Department of Trade and Industry. 

With the review on the horizon, the list of EVs with reduced rates on import duties is expected to expand and cover e-motorcycles and hybrid vehicles, said Balisacan. 

There are around 7.81 million private motorcycles and tricycles registered in the Philippines in 2022, making it the majority of motorists plying the country's roads, according to the Statista Research Department.