The Department of Trade and Industry (DTI) expects more investments in the manufacture of parts for electric vehicles (EVs) and in charging stations following the removal of tariffs on these vehicles.
Pascual told a radio interview over the weekend he expects EV parts manufacturing to further flourish as global trends show a shift from vehicles run by internal combustion engines to EVs.
“We have a few factories here making (EV) components and we are taking care of them so we will attract more investments,” said Pascual, adding he also sees a shift to EVs in public transportation like buses and jeepneys.
The National Economic and Development Authority board last week endorsed an executive order modifying tariff rates 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 Favored Nation (MFN) tariff rates to zero percent for five years on completely built up 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.
Pascual said this will ease the importation of EVs and in the process would entice the construction of charging stations.
Pascual said the NEDA board excluded hybrid as most are luxury vehicles although they can benefit from the provisions of the Corporate Recovery and Tax Incentives to Enterprises.
