The Department of Trade and Industry is taking a more proactive role in support of the widespread adoption of electric vehicles in the country.
The agency, in line with its mandate to promote industry development and encourage sustainable transportation, proposed the temporary removal of tariffs on EVs for a period of five years to encourage increased shift to EVs.
Recognizing the potential of EVs in reducing the country’s reliance on oil and promote greener transportation system, the DTI aims to reduce the purchase price of EVs by eliminating tariffs.
“This move is expected to create a surge in demand for EVs, foster investments in EV charging infrastructure, and stimulate the growth of the local EV industry,” DTI Secretary Alfredo Pascual said.
It requested the Tariff Commission to conduct an investigation on EVs, as mandated by Section 1608 of the Customs Modernization and Tariff Act.
The TC then held a public hearing on May 12, 2022. Based on its findings, the tariffs on e-jeepneys and e-tricycles will be retained at 20 percent/30 percent to provide support for local producers and allow for a smooth transition.
The National Economic Development Authority board approved an executive order on Nov. 24, 2022, which would implement the tariff modification for certain EVs and their parts and components. EO No. 12, issued on Jan. 13, 2022, outlines the implementation of the tariff modification.
Under Section 2 of EO No. 12, a review of the tariff measure and its coverage is scheduled to take place one year after the implementation of the order. NEDA will subsequently submit its findings and recommendations to the Office of the President.
EO No. 12 was officially published in the Official Gazette on Jan. 19, 2023 and became effective on Feb. 20, 2023, allowing for the review process to commence on Feb. 21, 2023.
The DTI said it remained committed to fostering an environment that promotes the adoption of EVs and paves the way for a greener and more sustainable future of transportation in the country.
