The Department of Energy (DOE) proposed the temporary removal of import duties on electric motorcycles and hybrid electric vehicles including their parts and components.
“By eliminating the tariff rates for these items, we can provide consumers in both private and public sectors with greater opportunities to choose EVs over traditional vehicles. We are now awaiting feedback from the Tariff Commission on this proposal,” Energy Secretary Raphael Lotilla said in a speech during the 11th Philippine Electric Vehicle Summit at the SMX Convention Center Manila.
Lotilla said DOE was awaiting feedback from the Tariff Commission on the temporary tariff removal, stressing that the transition to EVs is a key component of the decarbonization of the economy.
“The President has issued Executive Order No. 12 which reduces the tariff rates to 0 percent on completely built-up units of certain EVs for a period of five years,” Lotilla said.
He said President Ferdinand Marcos Jr. wanted 50 percent or more of all vehicles on roads to be electric by 2040, which would reduce the transport sector’s carbon dioxide emissions by 1.9 million tons.
He said transportation is one of the sectors that emits the most greenhouse gas emissions, accounting for more than 30 percent of the total energy consumption in the country.
“Making transport therefore cleaner is also part of the country’s commitment to fulfill its nationally-determined contributions—a climate pledge that promises to reduce greenhouse gas emissions. And we are committed to decarbonize our transport sector,” Lotilla said.
The energy chief said the market for EVs in the Philippines has grown significantly and is expected to grow over the coming years.
“For the first quarter of 2023 alone, the number of EV sales, as already emphasized, has surpassed the total EV sales for the last three years,” he said.
Lotilla said government was looking at a network of over 100,000 charging stations powered by renewable energy.
“They are milestones in our journey, guided by the Comprehensive Roadmap for the Electric Vehicle Industry or the CREVI, which sets a minimum 10 percent target EV share for all sectors, excluding EV trucks by 2040 under the Business-As-Usual Scenario,” he said.
Lotilla said the aggressive clean energy scenario sets a more ambitious target of at least 50 percent EVs of all fleets by 2040.