PROFESSOR of Sociology and Political Science and a Fellow for Education of the Stratbase ADR Institute Louie Montemar has urged the government to expand the coverage of tariff breaks for electric vehicles (EVs) saying that it will become a “real game-changer.”
In his published opinion, Montemar said the suspension of tariff for EVs and their components must be financially inclusive as the exclusion of the two and three-wheeled vehicles under Executive Order No. 12 discriminates against the working class who can only afford motorcycles.
“Given the soaring price of gasoline, electric vehicles are becoming an even more attractive option for economically disadvantaged Filipinos,” Montemar said.
The sociologist reiterated that two-wheeled vehicles are work enablers for the financially unstable Filipinos who are commuting to school or work and for those who use them on their jobs.
According to Land Transportation authorities, almost 8 million units of motorcycles have been recorded in their agency. Motorcycles are also the most favored mode of transportation of motorists in the country, both in the urban center and rural areas
“These two-wheeled vehicles are work enablers for financially disadvantaged Filipino families since they are a cheaper alternative to commuting to and from work or school and as a means for deliveries for various businesses,” the professor added.
Earlier this year, the government passed EO 12 series of 2023 which seeks to suspend the tariff for EVs and their components from 5 to 30 percent to zero percent. This is, however, with the exemption of electric motorcycles which are still subject to 30 percent import duty.
Montemar also stated that if the coverage of EO 12 will be expanded, it will help enhance the employment rate of the country.
This was initially supported by various stakeholders such as House Deputy Speaker and Trade Union Congress of the Philippines President, Rep. Raymond Mendoza who said that the e-vehicle industry can slash the rate of carbon emissions of the country and at the same time, generate more jobs for Filipinos.
The professor insists that the success stories of local producers of e-motorcycles creating green jobs for local communities can be replicated to boost local employment.
“There is no reason to doubt that these success stories could be replicated. Coupled with a program to support the local industry and bold entrepreneurs and innovators to create and maintain e-vehicles,” he reiterated.
Think tanks and other stakeholders are also urging the government to review the EO and make it more inclusive by including e-motorcycles.
EO 12 is also one of the country’s solutions to mitigate the effects of climate change by cutting down the rate of carbon emissions caused by the transportation system of the country.
As per the data gathered by WHO, 25 percent of the Philippines is exposed to unhealthy air of PM2.5 concentration, which is at least five times more than a global recommendation.