Senator Sherwin Gatchalian, the principal author of the Electric Vehicle Industry Development Act, called for the short-term suspension of tariffs on electric vehicles to support the development of the industry.
“The short-term protection will give time for local manufacturers to transition to e-vehicles,” Gatchalian said in a statement over the weekend.
President Ferdinand Marcos Jr. signed in January 2023 Executive Order No. 12 which removed tariffs on EVs to lower EV prices and make them more affordable to local consumers. The proposed five-year tariff is intended to increase the adoption of EV usage and reduce carbon emissions.
“We expect that tariff exemption of EVs will lead the country to usher in an EV ecosystem that is vibrant, responsive, and dynamic,” Gatchalian said.
He said the tariff suspension excludes two-wheeled electric motorcycles to protect local manufacturers of tricycles. Only kick scooters, self-balancing cycles, bicycles and pocket motorcycles with auxiliary motors not exceeding 250 watts and with a maximum speed of 25 kilometers per hour would have zero percent import duties, while e-motorcycles are still subject to a 30 percent tariff rate.
