NextGen Day

According to Socioeconomic Planning Secretary Arsenio Balisacan, President Ferdinand R. Marcos Jr. is about to sign an executive order (EO) that will lower tariff rates on imported electric vehicles (EV) and their parts and components.

According to Balisacan, the National Economic and Development Authority (NEDA) Board has given Marcos its approval to alter the EO to zero the tariffs on EVs, including motorbikes, tricycles, scooters, trucks, vans, lorries, passenger vehicles, buses, and minibusses.

He did note that hybrid-type EVs would be exempt from the tariff decrease, which would only apply to the completely built-up unit (CBU) EVs.

In addition, the EO would reduce tariffs on EV parts and components from the current 5 percent to 1 percent, according to Balisacan.

The five-year implementation period of the tariff change.

He continued, “The EO aims to broaden market sources and encourage consumers to think about purchasing EVs, improve energy security by lowering dependence on imported fuel, and boost the establishment of the domestic EV industrial ecosystem.

As a result of a free trade deal with other Southeast Asian nations, EVs originating from the Association of Southeast Asian Nations (ASEAN) are already subject to zero tariffs; however, the most favored nation (MFN) tariff for EVs is still high at 30%.

This reform would be advantageous for EVs imported from significant EV producers including China, Japan, and South Korea.

After a year, we will examine this new policy’s results and decide how to restructure the system, according to Balisacan.

According to him, the EO’s release would allow for the sale of additional EVs, and the expansion of ancillary services like charging stations is anticipated to follow.

As of right now, there aren’t many of these vehicles on the road, but since we want to promote the usage of EVs, the demand for charging stations will soon rise. It may even create services that offer value for our sector, he continued.

According to a Frost & Sullivan-commissioned report from 2021, the Philippines is one of the Southeast Asian nations that is most prepared to accept electric vehicles.

The survey also demonstrated that ASEAN consumers have been encouraged to buy electric automobiles due to the notable lessening of barriers.

Infrastructure issues, such as the lack of charging stations, are the top worries of prospective EV customers in the area.

Ayala Land, Inc. announced last month that it would roll out at least 20 electric vehicle charging stations across Luzon. These stations would be placed in key areas such as malls, offices, estates, hotels, and industrial zones owned by the business.

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