Provisional tax cut for EVs sought

Last November 2022, the National Economic and Development Authority Board approved an Executive Order that will implement the tariff modification for certain EVs and their parts and components

Trade Secretary Fred Pascual is asking for the temporary removal of taxes on electric vehicles for five years to encourage the widespread adoption of electric vehicles in the country.

In a statement, Pascual said the DTI aims to reduce the purchase price of EVs by eliminating tariffs, identifying the potential of EVs in reducing the country’s reliance on oil, and promoting a greener transportation system.

“This move is expected to create a surge in demand for EVs, foster investments in EV charging infrastructure, and stimulate the growth of the local EV industry,” Pascual said.

Last month, Pascual stressed that the temporary elimination of tariffs is seen to drive down the purchase price of EVs, thereby generating increased demand and encouraging investments in charging stations

TC probe also sought

To attain the proposal, Pascual has requested the Tariff Commission to conduct an investigation on EVs, as mandated by Section 1608 of the Customs Modernization and Tariff Act.

With this, the TC held a public hearing on 12 May 2022. Based on its findings, the tariffs on e-jeepneys and e-tricycles will be retained at 20 percent and 30 percent to provide support for local producers and allow for a smooth transition.

Last November 2022, the National Economic Development Authority Board approved an Executive Order that will implement the tariff modification for certain EVs and their parts and components.

EO 12, issued on 13 January 2022, outlines the implementation of the tariff modification.

Under Section 2 of EO 12, a review of the tariff measure and its coverage is scheduled to take place one year after the implementation of the order.

Subsequently, NEDA will submit its findings and recommendations to the Office of the President.

The EO 12 was officially published in the Official Gazette on 19 January 2023 and became effective on 20 February 2023, allowing for the review process to commence on 21 February 2023.

“The DTI remains committed to fostering an environment that promotes the adoption of EVs and paves the way for a greener and more sustainable future of transportation in the country,” according to Pascual.