Order to cut tariffs on e-vehicles issued soon–lopez
TRADE Secretary Ramon M. Lopez expects that the executive order (EO) on reducing tariffs on electric vehicles to zero to be issued before Congress reconvenes.
The chief of the Department of Trade and Industry (DTI) told the Businessmirror he believes the instruction is already with the Tariff Commission.
Trade Secretary Ramon M. Lopez noted that the EO needs to be released before Congress resumes session on May 23.
“Ongoing din yun pero yung na “We just have to check if the public hearing has been conducted.”
“So hinihintay lang natin. Obviously this month kelangan mapasa na before May 23; before bumalik yung Senate and Congress,” Lopez said in an interview with Businessmirror during the launch of DTI’S “Go Lokal” project. Last week, the DTI chief expressed hopes the EO will be signed before the end of President Duterte’s term on June 30.
During the launch of the free evehicles (EV) charging stations at selected shopping malls last week, Lopez said the Tariff Commission has already started conducting hearings regarding the lowering of tariffs on imported EVS from 30 percent to 0 percent.
In addition, the Trade Secretary emphasized the DTI has already crafted an EO that will allow rechanneling of funds for the third participant of the Comprehensive Automotive Resurgence Strategy (CARS) program to EV manufacturing.
Lopez noted during the launch that “there are supposed to be three participants [but there’s no third one]”
He hopes the remaining budget for the supposed third participant can be converted to the development of the e-vehicles manufacturing sector instead.
Lopez added that “it’s still a draft EO that I like to present to the president and hopefully it can be passed… in his administration.” The CARS program is an initiative to boost local automotive production. However, since there is no third participant, the Trade chief has proposed to transfer the budget to the manufacturing of e-vehicles instead.
Under the program, the participants were originally given six years to manufacture at least 200,000 units and to produce body shells and other automotive parts. In return, each enrolled model will be provided a fiscal support of P9 billion. The program, signed in 2015, has a total allocation of P27 billion
Last week, the first-ever in-mall free charging stations in the Philippines was launched as the government steers the power sector to renewable energy and sustainability initiatives.
The e-vehicle is being touted as an alternative to vehicles that run on internal combustion engines. As of 2020, there are 12,965 registered EVS in the Philippines. They are now expected to become more accessible to the public after Republic Act (An Act Providing for the Development of the Electric Vehicle Industry) 11697 finally lapsed into law in early April.