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PHILLIPINES, 30 May 2023: The Department of Trade and Industry (DTI) is actively supporting the widespread adoption of electric vehicles (EVs) in the country. In line with its mandate to promote industry development and sustainable transportation, the agency has proposed a temporary removal of tariffs on EVs for a five-year period. The aim is to encourage a greater shift towards EVs by reducing the purchase price through the elimination of tariffs.
Tariff cuts on EV’s
DTI Secretary Alfredo Pascual stated that this initiative is expected to drive increased demand for EVs, attract investments in EV charging infrastructure, and stimulate the growth of the local EV industry. To pursue this, the DTI has requested the Tariff Commission (TC) to conduct an investigation on EVs as required by the Customs Modernization and Tariff Act.
The TC conducted a public hearing on 12 May 2022, and based on its findings, it has decided to retain tariffs at 20percent/30percent for e-jeepneys and e-tricycles. This decision aims to provide support for local producers and ensure a smooth transition.
Prior orders
On 24 November 2022, the National Economic Development Authority board approved an executive order (EO No. 12) to implement the tariff modification for certain EVs and their parts and components. The implementation of EO No. 12 was outlined in a document issued on 13 January 2022. As per Section 2 of EO No. 12, a review of the tariff measure and its coverage is scheduled to occur one year after its implementation. The findings and recommendations of the review will be submitted to the Office of the President by the National Economic Development Authority.
EO No. 12 was officially published in the Official Gazette on 19 January 2023, and it became effective on 20 February 2023. This allows the review process to commence on 21 February 2023.
The DTI affirms its commitment to fostering an environment that promotes the adoption of EVs and paves the way for a greener and more sustainable future of transportation in the country.
Conclusion
The DTI is actively supporting the widespread adoption of electric vehicles by proposing the temporary removal of tariffs. This move aims to reduce the purchase price of EVs, stimulate demand, attract investments in charging infrastructure, and drive growth in the local EV industry. The tariff modification has been implemented through EO No. 12, with a review scheduled for one year after its implementation. The DTI remains committed to creating an environment that encourages the adoption of EVs and promotes a sustainable future of transportation in the country.
