NEDA Endorses EO Modifying Tariffs of EV and Parts

Socioeconomic Planning Secretary Arsenio Balisacan has mentioned that they are expecting President Ferdinand R. Marcos Jr. to sign an executive order (EO) that will decrease tariffs on imported electric vehicles (EV) and EV parts and components.

Secretary Balisacan has mentioned that the National Economic and Development Authority (NEDA) Board has already endorsed the EO to President Marcos. The EO would cover bicycles, scooters, tricycles, motorcycles, trucks, vans, mini-buses, buses, and passenger cars.

The cuts in tariffs would only be applied to completely built-up unit (CBU) EVs, with an exemption for hybrid-type EVs.

From the current 5%, the endorsed EO would lessen this to 1% and would be implemented for five years.

Secretary Balisacan says that “The EO aims to expand market sources and encourage consumers to consider acquiring EVs, improve energy security by reducing dependence on imported fuel, and promote the growth of the domestic EV industry ecosystem,”

The Philippines currently has a free trade agreement with other Southeast Asian countries and impose zero tariffs on EVs coming from these countries. However, the EV tariff for the most favored nation (MFN)  stays at 30%.

The endorsed EO would be advantageous to EVs imported from large suppliers such as South Korea, Japan, and China.

“We will review the effects of this new policy after one year and we’ll see how we reconfigure the system by then,”  mentioned Secretary Balisacan.

It was also mentioned that the EO would open up the market for EVs, with charging stations and auxiliary services expected to follow shortly.

Source: Philippine News Agency