Pascual unsure on hybrid vehicle inclusion in EO 12

INCLUDING hybrid electric vehicles (HEVs) in the coverage of Executive Order (EO) 12 goes against the goal of increasing infrastructure for EVs, Trade Secretary Alfredo Pascual said.

Following the National Economic and Development Authority’s (NEDA) discussions on the possible expansion of EO 12 to cover e-motorcycles and hybrid vehicles, Pascual said that it could hinder the setting up of charging stations as a feasible business.

Pascual said that one of the reasons why they pushed for the reduction of the tariff on pure electric vehicles (EVs) is to make the setting up of charging stations a feasible business operation in the Philippines.

“If you introduce hybrids, you will reduce the [objective], and it will not contribute to the attainment of that objective,” Pascual said in a briefing on Friday.

The official added that HEVs don’t need a charging station as these have internal combustion engines that charge the vehicle’s battery.

“That is not the objective of the reduction of tariffs for pure electric EVs. The real objective is to encourage the establishment of charging stations to develop infrastructure supporting the transition to electric vehicles,” said Pascual.

Department of Trade and Industry Undersecretary Ceferino Rodolfo added that zero tariff for pure EVs was made to build the market by increasing demand. “So that if you have the market, there will be sufficient economies of scale for EVs to be assembled here.”

“Ultimately, Secretary Fred’s objective when arguing for this was really for electric vehicle assembly to happen here. That’s the basic objective, and then to solve the issue of the lack of infrastructure,” said Rodolfo.

EO 12, which became effective on February 20 last year, temporarily reduced the rates of import duty on certain EVs and their parts and components for five years. It will be up for review and stakeholders are hopeful that it will be expanded to include e-motorcycles and HEVs in the list of vehicles to be given tax breaks.

NEDA said that the review aims to ensure alignment with the objectives of EO 12 by promoting increased adoption of electric vehicles and supporting the development of the local EV market.