Business
The zero-rate policy is now being extended to two-wheeled electric vehicles and hybrid vehicles
By means of Beatriz Marie D. Cruz, News reporter
THE NATIONAL Economy and Development Authority (NEDA) Board of Directors on Wednesday provided tax breaks for electric motorcycles (e-motorcycles), electric bicycles (e-bicycles) and hybrid electric vehicles (EVs), as the government aims to further promote green transport and reduce CO2 emissions.
The NEDA Board of Directors, chaired by President Ferdinand R. Marcos Jr., on Wednesday approved expanding the coverage of Executive Order (EO) No. 12, which temporarily reduced electric vehicle tariffs to zero until 2028.
The zero-rate policy will now cover e-motorcycles, e-bicycles, nickel-metal hydride accumulator batteries, e-three-wheelers and four-wheelers, hybrid electric vehicles and plug-in hybrid electric vehicles (PHEV) jeepneys or buses.
The NEDA board also agreed to maintain the zero-tariff policy for 34 lines of battery EVs currently under EO 12.
In February 2023, Mr. Marcos signed EO 12, which temporarily lifted the tariffFfs for EVs and their parts and components for Ffive years. However, the EO did not include two-wheeled electric vehicles and hybrid vehicles.
Prior to ordering, tariFf rates for some EVs ranged from 5-30%.
“EO 12 is designed to stimulate the country’s EV market, support the transition to emerging technologies, reduce our transportation system’s dependence on fossil fuels and reduce greenhouse gas emissions attributed to road transport,” it said NEDA Secretary Arsenio M. Balisacan in a statement Thursday.
The Philippine government is now promoting more environmentally friendly modes of transportation as it committed to reducing greenhouse gas emissions by 75% by 2030 under the Paris Agreement.
“By encouraging consumers to adopt electric vehicles, we are promoting a cleaner, more resilient and more environmentally friendly transportation alternative,” said Mr. Balisacan, who is also Vice Chairman of the NEDA Board.
The recommendation to expand EO 12 coverage was made by the Committee on Tariffs and Related Matters (CTRM) following a series of industry consultations.
The Ministry of Trade and Industry said the expansion of the EO aligns with the country’s commitment to a green transition and promotes the adoption of environmentally friendly transportation.
“By making EVs and hybrid EVs more accessible and aFForded, the government not only promotes sustainable mobility, but also contributes to cleaner air and a healthier environment,” Trade Secretary Alfredo E. Pascual said in a statement.
European Chamber of Commerce of the Philippines (ECCP) President Paulo Duarte welcomed the expansion of EO 12, saying it would help the industry achieve the goals set in the Comprehensive Roadmap for the Electric Vehicle Industry .
“The comprehensive abolition of EV tariffFfs will also provide a positive impetus to the development of EV infrastructure. We also commend the integration of hybrid EVs and PHEVs into the zero rateFfs program as this will significantly increase its affordability and serve as a driving force for the eventual market penetration of (battery EVs), encouraging their widespread adoption and accelerating the transition to cleaner mobility solutions,” said Mr. Duarte in a Viber message.
Philippine Chamber of Commerce and Industry Chairman George T. Barcelon said EO 12 would help the Philippines develop its own EV manufacturing center.
“The advantage is that this could stimulate the production or assembly of such EV vehicles. Other countries have already started on the production side, and we can also catch up,” he said by phone.
Rene S. Santiago, founder of the Transportation Science Society of the Philippines, said road traffic needs to be improvedffic Flow would be a better way to reduce greenhouse gas emissions.
“Lower taxes may attract more buyers, but the percentage of Filipino households that canFFord, those electric vehicles are small,” Mr. Santiago said via Viber.
Eleanor L. Roque, tax director of P&A Grant Thornton, noted that while the order would reduce revenue collection, the government’s top priority should be sustainability and environmental protection.
“We are already at 11e hour and the government cannot rely solely on market forces or social changes. Otherwise we are setting ourselves up for failure. The government must take action and drive change,” she said in a Viber message.
PROJECT APPROVALS
Meanwhile, the NEDA board approved a P2.75 billion Facility to Accelerate Studies for Infrastructure (FAST-Infra).
“FAST-Infra will initially focus on the transportation sector by providing fund support in formulating high-quality transportation master plans and developing a robust pipeline of major transportation projects that would strengthen both national and regional connectivity,” the report said.
The board has also greenlit the Infrastructure for Safer and Resilient Schools (ISRS) project, which involves the repair, rehabilitation and reconstruction of school facilities damaged by natural disasters.
The project will be implemented from this year until 2029. It will cover 13,101 classrooms in 1,282 schools across the country.
The NEDA board also extended the implementation period of the P8.41 billion Light Rail Transit (LRT) Line 2 East Extension project to make way for the “full disbursement to project contractors and consultants and to improve the quality of the project to by the end of 2011. the liability period for defects in December 2024.”
The project, which added train stations in Marikina City and Antipolo, east of Metro Manila, was completed in 2021.
The NEDA board also approved the extension of the Ministry of Agrarian Reform’s land title project to December 31, 2027 from January 1, 2024. The loan validity period was also extended to December 31, 2027 from January 1, 2025.
The project to support the parcelling of land for individual titles worth 24.62 billion euros aims to improve land tenure security and stabilize property rights under agricultural reforms.Fice trees.
