Eliminating tariff on hybrid vehicles at this time is not justifiable, according to Secretary Alfredo Pascual of the Department of Trade and Industry (DTI).
Pascual said in a press briefing the tariff cut goes against the objective of building a charging infrastructure to bring up volumes of EVs to a critical mass leading to local manufacturing and assembly.
“Our objective was to have a critical mass of EVs to make the setting up of charging stations a feasible business and operation that will support our transition to EVs. Hybrid did not contribute to the objective,” said Pascual when sought for his comment on the possible inclusion of hybrids in Executive Order 12.
EO 12 removed the tariff on pure EVs for five years starting February 2023. The EO is being reviewed.
Hybrids use a gasoline engine and an electric motor and can be driven using its electric power alone, as well as with the engine and electric motor working together.
One Japanese brand’s hybrid vehicles are self-charging.
Ceferino Rodolfo, undersecretary of the DTI and managing head of the Board of Investments expressed fear of a deluge of imports of hybrids from Japan and from Thailand and Indonesia where the supply chain for internal combustion engine is also present.
Rodolfo added the government is open to discussing the matter of granting tariff privileges on hybrids in the context of the general review of the Philippines-Japan economic partnership agreement.
Rodolfo also lamented the fact that hybrid vehicles are on the more expensive side which targets only a small portion of the market.
The National Economic and Development Authority has started the official review of the potential expansion of EO 12 to cover e-motorcycles and hybrid vehicles “pursuant to Section 2 thereof, which provides for the review of the EO after one year of implementation.”