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Zero-tariff policy on electric vehicles expected by end of 2022


THE proposed zero-tariff policy for electric vehicle (EV) imports is expected to be released within the year, an official with the Department of Energy (DoE) said.

Patrick T. Aquino, director of the DoE’s Energy Utilization Management Bureau, said at a briefing in Taguig City on Thursday that the policy is awaiting evaluation by the Committee on Tariff Related Matters of the National Economic and Development Authority.

“Based on our understanding, we are just waiting for the settling of the new officials. The zero percent ad valorem (tariff) is expected to be released within the year,” Mr. Aquino said.

Mr. Aquino added that the proposed zero-tariff regime for EVs is expected to run between five and seven years.

“You can expect the zero-ad valorem… irrespective of country of origin, to zero hopefully before the end of the year. There’s a requirement for an executive order for that,” Mr. Aquino said.

Current tariffs are between 5% and 30%.

“The net effect is that there will be a slight decrease in terms of the landed cost for EVs right now,” Mr. Aquino said.

According to Electric Vehicle Association of the Philippines Chairman Ferdinand I. Raquelsantos, the policy can help bring down the price of EVs, facilitating adoption.

In the case of an EV car priced at P1.5 million, “with zero ad valorem duties, it goes down to P1.2 million. You can save about P300,000,” Mr. Raquelsantos said.

Trade Secretary Alfredo E. Pascual previously said that the Tariff Commission recommended removing the tariff imposed on EVs in a bid to increase usage in the Philippines.

“We are opening our EV market to help develop an ecosystem for a viable market that can support the production of electric vehicles in the Philippines,” Mr. Pascual has said.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) also declared its support for the removal of the tariff.

“CAMPI supports all EV technologies including hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV). All these have potential for fuel consumption reduction and vehicle emission mitigation in the mid- to long-term,” CAMPI President Rommel R. Gutierrez has said.

EV adoption in the Philippines is projected to increase following the passage of Republic Act No. 11697 or the Electric Vehicle Industry Development Act (EVIDA), which lapsed into law on April 15.

The law calls for the creation of the Comprehensive Roadmap for the Electric Vehicle Industry which will lay down the development path for the EV industry.

EVIDA also requires the government and companies to meet a 5% EV quota on their vehicle fleets. — Revin Mikhael D. Ochave 

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