Include E-motorcycles In Tax Breaks

A mobility advocate said electric motorcycles should also be given tax breaks like other types of electric vehicles.

Electric Kick Scooter of the Philippines co-founder Tim Vargas explained how two-wheeled electric motorcycles were left out under Executive Order No. 12 series of 2023, which temporarily modifies the tariff rate for electric vehicles and components.

Under this order, only kick scooters, self-balancing cycles, and pocket motorcycles with auxiliary motors not exceeding 250w and with a maximum speed of 25 km/hour have 0% import duties, while electric motorcycles would get a 30% tariff rate.

“It’s very sad that it’s not part of the EO12 and we’re hoping that it would be amended or a new EO would be passed so we’ll make it on time,” Vargas said.

Vargas urges clarification on the exclusion of electric motorcycles in the EO12 which should be revisited by the executive committee.

“I will find it very unfair if this won’t be fixed especially since we’re in a democratic country so almost everyone should be accommodated,” Vargas said.

Vargas added two-wheeled motorcycles are also the main choice of transport for Metro Manila residents which should be prioritized for incentives. The Land Transportation Office recorded almost 8 million units of registered motorcycles in 2021.

Vargas also argued that the wide use of two-wheeled motorcycles and the rise of the e-vehicle industry could help increase the country’s employment rate.

“I’m pretty sure that it’s gonna create a different market,” he said.

EV use from other stakeholders is being pushed due to the Philippines being the third most vulnerable country to the effects of climate change and is predicted to lose 6% of its gross domestic product annually by 2100.

A study by American business consulting firm “Frost and Sullivan” in 2018 showed that a total of 93% of Filipinos were open to buying electric vehicles in the future.

The Electric Vehicles Association of the Philippines sees the EV market will grow at an annual rate of 8% to 12% over the next years. This would generate about ₱1.68 billion in revenue services and sales of 200,000 units by 2024.

According to the Department of Trade and Industry, 28 firms are currently engaged in manufacturing electric vehicles in the country, providing around 14,840 jobs.

Source: Philstar