The expansion of the incentives on electric vehicles (EVs) to include all types of EVs will help the Philippines attain the goals contained in the EV Industry Development Act (EVIDA).
Patrick Aquino, director of the Energy Utilization Management Bureau (EUMB), said the inclusion of two- and three-wheeled vehicles, hybrid EVs and plug-in hybrid EVs as designed by EVIDA in the tariff elimination would fasttrack adoption of EVs.
At present, only battery EVs enjoy those perks under Executive Order 12.
“We’re confident the Tariff Commission will follow the same trajectory and listen to the recommendation,” said Aquino.
He added the Department of Energy ’s recommendation is supported by the Department of Trade and Industry and the National Economic and Development Authority.
The incentives address the affordability issue that hampers ownership.
Asean tariffs are already at zero but with the 5 to 30 percent tariffs removed, EVs imported outside the region like Japan, Korea, China, Europe and North America become more accessible to more buyers.
The proposal is to suspend import tariff for the remaining four years via a revision of EO 12.
“We are hoping that is how the Tariff Commission will interpret that because we want to harmonize (the order). We have formalized (our request) and we are waiting for consultation process of the Tariff Commission,” Aquino said, noting issuance of an EO is also timebound and possible only when Congress is not in session.
Aquino added the revenue impact will also be known in the public consultations.
“The benefits that we want is to reach the target in EVIDA which as it is, watered down since it does not offer any subidies and rebates, nor lower VAT (value-added tax),” he said.
Aquino said the only incentives for EV users are exemption from unified volume reduction scheme and motor vehicle users registration.
With limited fiscal space, government may not be able to give the rebates.
Based on EVIDA, the share to total industry vehicle stock of all EVs by 2030 should be 15 percent for passenger and commercial vehicles; 15 percent for motorcycles and 20 percent for buses.
