The National Economic and Development Authority (NEDA) Board is endorsing an executive order (EO) which will modify the tariff rates on certain electric vehicles (EV) and their parts and components, the country’s socioeconomic chief said yesterday.
In a briefing in Malacañang yesterday, NEDA secretary Arsenio Balisacan said the NEDA Board, in its first meeting under the current administration, also approved the guidelines on processing Public-Private Partnership (PPP) proposals. The NEDA Board likewise confirmed the Investment Coordination Committee (ICC) approvals of six other projects.
Balisacan told reporters that the NEDA Board endorsed the EO which will implement tariff modification on certain EVs such as passenger cars, buses, mini-buses, vans, trucks, motorcycles, tricycles, scooters and bicycles, among others, including EV parts and components.
In particular, the EO will temporarily reduce the most favoured nation (MFN) tariff rates to zero percent for five years on completely built up (CBU) units of certain EVs, except for hybrid-type EVs.
It will also implement tariff modification on certain parts and components of EVs from five percent to one percent for five years.
The NEDA Board also indicated that the tariff modification shall be reviewed after one year of implementation with a view to assessing its impact on the development of the EV industry ecosystem.
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 NEDA Board approved NEDA’s guidelines on processing PPP proposals. The new procedures aim to harmonize the review and approval of the NEDA Board and the ICC, including the preparation and submission of government agencies of PPP projects with the joint evaluation of the NEDA Secretariat, the PPP Center and the Department of Finance.
The guidelines also include the updated list of documentary requirements for solicited and unsolicited PPP proposals.
The issuance of the guidelines is pursuant to Section 2.10 of the Revised 2022 Implementing Rules and Regulations of the Build-Operate-Transfer law. – Angela Celis
