The government recently approved the zero tariff on electric vehicles that aims to encourage consumers to use “cleaner and greener” cars. This will run for five years, according to the Executive Orde 12 dated last 13 January, with the exclusion, so far, of hybrid vehicles. After the duration, the particular vehicles will be slapped by a 30-percent tariff.
According to the EO, the transportation sector is one of the largest sources of air pollution and energy-related greenhouse gas emissions in the country at 34 percent, with road transportation accounting for 80 percent of emissions.
In a statement, Electric Vehicle Association of the Philippines president Edmund Araga said, “Finally, our EV industry will totally roll out in line with EO 12 as it opens a very good opportunity for those EV enthusiasts and advocates to own one.”
“Consumers will experience a wide array of models to choose from depending on their preferences. As we all know, we now rely on importation of EVs, specifically EV cars for personal mobility.”
In fact, it’s been a long time coming for group. For more than a decade, it has been aspiring to establish a national development program, anchored on the existing Motor Vehicle Development Program. In a ten-year span, there are four phases ought to be implemented. In 2013, the first phase was its launch program, which included technology upgrading needed by the industry. The second phase (2014 to 2015) involved build-up of the local market and enhancement of its production capacity while the third phase (2016 to 2018), the local and export market expanded together with horizontal and vertical integration with the local automotive industry. Lastly, the fourth phase (2019 to 2023) is currently running its full integration, with its regional and global developmental evolution in technological advancement and market size up.
ELECTRIC charging station was put up inside a hotel compund in Subic, Zambales.
Fourth phase ongoing
Finally, after 10 long years, the local market is now more open to electrification. Moreover, it is being further augmented by the government’s push through these tariff exemption privileges.
According to the Presidential Communications Office, the EO 12 temporarily cuts the Most-Favored Nation tariff rates to zero percent on completely built-up units of certain electric vehicles.
“The move will help boost the electric vehicle market in the country, support the transition to emerging technologies and encourage consumers to consider electric vehicles as a cleaner and greener transportation option,” the PCO said
More than just the EO 12, the government already implemented the Electric Vehicle Industry Development Act last year.
In a nutshell, EVIDA law offers the following: The importation of completely built-up EVs; imported charging stations are to be exempted from the payment of duties (from 10 percent to 30 percent depending on source) for eight years; users of battery EVs and hybrids are entitled to discounts on the motor vehicle user’s charge, vehicle registration and inspection fee for eight years from the effectivity of EVIDA at 30 percent and 15 percent, respectively.
Furthermore, EVs are priority for vehicle registration and renewal; eligible for a special type of vehicle plate; exempted from traffic management schemes to reduce vehicle volume; given priority in the processing of franchises to operate public utility vehicles; given permits for foreign nationals to be employed under technology transfer agreements, subject to the guidelines of the relevant government agencies. Not to mention dedicated parking slots.
Before, only the moneyed owned the majority of electrified vehicles on the road. Now, with price decreases left and right, spawning electric charging stations and the government fully supporting this ‘electric’ campaign, expect that it would be a much more equal playing field for everyone.