Finance Secretary Ralph Recto said Wednesday the expansion of electric vehicle incentive program under Executive Order No. 12 would generate more jobs in the area of green technology for Filipinos.
“This strategic move puts the Philippines at the forefront of green technology, attracting more sustainable investments. It will spur the creation of high-quality jobs, foster innovation, and offer Filipinos more eco-friendly vehicle choices. Ultimately, it will bring us closer to reaching our goal of reducing greenhouse gas emissions by 75 percent in 2030,” Recto said in a statement.
The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand Marcos Jr., on May 15, 2024 approved the expansion of tariff exemptions on electric vehicles (EVs) to include e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) jeepneys or buses. The tariffs on these articles will be reduced to 0 until 2028.
The tariff exemptions include EV parts and components and completely knocked down (CKD) EVs which could incentivize interested parties to assemble or even manufacture in the Philippines–deepening the manufacturing sector and generating quality employment.
The Committee on Tariff and Related Matters (CTRM) will conduct an annual review of the rates to ensure that they are timely, applicable and considerate of the sectors affected by the changes in duties on EVs.
The President originally signed EO 12 on Jan. 13, 2023, removing tariffs on EVs and their parts for five years. However, EO 12 did not include e-jeepney, e-bus, e-tricycle and e-quadricycle. With the expanded measure, EVs will be more accessible and affordable to consumers, thereby accelerating the country’s transition to environment-friendly transportation solutions.
These incentives are expected to attract more investors to establish operations in the Philippines, covering manufacturing, research and development, and infrastructure development in the EV industry.
The influx of investment is anticipated to boost government revenues and create green jobs, further solidifying the Philippines’ position as a leading manufacturing hub in Asia.