Philippines’ EO 12 Review will Focus on E-Motorcycles in Import Tax Break

In a bid to electrify the local transport and rising calls from the public, the Philippines Government will include e-motorcycles in the import tariff incentives. E-motorcycles will be the focus of the mandatory review of an Executive Order (EO) 12 issued by the President, as per the economics official. The EO .12 is reported to take effect in nine months from now.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan is reported to have issued the statement in response to the rising calls from the public to expand the coverage of Executive Order 12 to include all types of electric vehicles (EV) in the tax break.

NEDA, an economic development and planning agency, is responsible to review EO 12 to study the possible inclusion of two-and three-wheeled EVs in the import tariff exemption. As per the EO 12, issued by President Ferdinand Marcos Jr. In January 2023, tariffs were suspended for five years  on completely built units of certain EVs such as passenger cars, buses, minibuses, vans, trucks, motorcycles, tricycles, scooters and bicycles. It took effect on February 20, 2023. and is available for mandatory review starting February 21, 2024. The order however does not apply to hybrid-type EVs.

As per the circular, various electric vehicles and their components will have no import duty with the exception of e-motorcycles. In November 2022, Balisacan had said that the NEDA board has endorsed a version of the EO modifying the tariff rate for EVs, which included e-motorcycles.

“We want to encourage the use of e-vehicles because that will address pollution issues and our adaptation to climate change and we believe that’s the future,” he said.

“But more importantly, we want to be part of the value chain globally in this drive to get to this new industry, new growth drivers, and hopefully we develop our own industries and this reduction of tariff is part of that building up ecosystem,” he further added.

Think tank Stratbase ADR Institute President Dindo Manhit said, “The revision and inclusion of e-motorcycles in the tax break will help Filipinos choose EVs and help the government realize its goal on sustainable transportation.”

Electric Vehicle Association of the Philippines President Edmund Araga, who initially lobbied against the inclusion of e-trikes and e-jeeps in the EO, opined  that giving tax breaks for e-motorcycles will accelerate electrification of  the transport sector and develop a local industry for it.