EV sales soar six-fold, thanks to tariff relief

The adoption of electric vehicles (EVs) in the country is gaining more ground, as Filipinos increasingly cater to eco-friendly modes of transportation amid the country’s effort to push for the electrification of transport.

Data from the Electric Vehicle Association of the Philippines (EVAP) showed a six-fold increase in EV sales in the first quarter of 2023, as the group forecasts sales to reach around 6.6 million units by 2030.

There were 2,536 EV units sold in the local market from January to March last year, a 495.3-percent growth compared to the 426 EV units sold for the whole of 2022.

Part of the push for the adoption of EVs in the country is the enactment of Executive Order 12 , which modified the tariff rates for certain EV types and their parts and their components to zero. E-motorcycles or the two-wheeled EVs, however, remain excluded and are still subject to 30 percent tariff.

Lawyer and green transport advocate Vin Ching said the monetary incentive for the inclusion of e-motorcycles in the list of EVs that benefit from tax breaks will be significant.

“The inclusion of e-motorcycles will benefit those from the working class, those who really need transportation... it will also be necessary in order to give true meaning to the intent and purpose of the EVIDA law and the executive department.

EO 12 was enacted to complement the Electric Vehicle Industry Development Act (EVIDA) to create an industry for EVs and help reduce carbon emissions, in compliance with the country’s’ commitment to the Paris Agreement.

The National Economic and Development Authority is set to review and possibly revise EO 12 a year after its issuance on Feb. 21, 2023. NEDA Secretary Arsenio Balisacan said the main focus of the executive issuance’s evaluation would be on the tax benefits for e-motorcycles.