The Department of Trade and Industry (DTI) said it does not support the reduction of most favored nation (MFN) tariff rates on hybrid electric vehicles (HEVs) which is being explored as part of the review on Executive Order No. 12.
Trade Secretary Alfredo Pascual said while distributors were pushing for the inclusion of the HEV to be covered by the 0 percent tariff clause under the EO, “this is not justifiable.”
“We want to increase the population of electric vehicle because this will generate interest for businesses to invest on charging stations, accelerating our goal to achieved electrified motorization sooner,” Pascual said.
He said extending the same tax breaks to HEV would defeat the purpose of the EO which is to increase the sales and use of fully electric vehicles in the Philippines.
The higher adoption of EV usage in the country does not only support the government’s call for greener industries but will also cut the country’s dependence on imported fossil fuel, he said.
Trade Undersecretary for investment promotions and Board of Investments (BOI) managing director Ceferino Rodolfo said the DTI would, however, build on its proposal to expand the coverage of the law to also include e-motorcycles and other two-wheeled vehicles.
“We need to build the demand to allow the creation of an EV ecosystem. Ultimately what we want is for assemblers and car companies to invest on Ev manufacturing in the Philippines,” Rodolfo said.
He said creating a critical mass of EVs in the market would stimulate investment on infrastructures such as charging facilities, parts manufacturing, EV battery manufacturing and other allied industries and services.
Rodolfo said the BOI recognizes the clamor of EV motorcycle distributors and assemblers to also receive the same tariff cuts extended to other EV units.
The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) earlier expressed optimism the government would consider the industry’s petition to extend tariff exemption to HEVs.
CAMPI cited the need to broaden the scope of EO 12, highlighting its potential to accelerate the adoption of electrified vehicles in the Philippines.
The group said that including HEVs in the program would significantly boost their affordability and market presence, ultimately leading to widespread adoption.
CAMPI acknowledged the growing consumer interest in HEVs and their environmental and user benefits, highlighting their potential to contribute significantly to the country’s transition towards sustainable transportation.