Tariff Commission recommends inclusion of e-motorcycles in EO12 tax break

The Tariff Commission (TC) has recommended to the National Economic and Development Authority (NEDA) the inclusion of e-motorcycles in the tax incentives expanding the scope of Executive Order No. 12 series of 2023.

Per the TC’s website update, the agency recommended the possible inclusion of e-motorcycles under EO12, the executive issuance that gives tax breaks to electric vehicles (EVs), after taking into consideration the numerous position papers submitted by stakeholders during its public hearing on March 13, 2024.

This was after NEDA comissioned its attached agency TC to hold the public hearing to pool suggestions and findings by stakeholders, along with their arguments and data-backed positions as to why e-motorcycles should get tax breaks.

The Commission submitted to NEDA on April 12, 2024 its report on EO12 review talks which will subsequently be followed by several deliberations before the executive issuance gets its final update.

TAX BREAKS FOR E-MOTORBIKES

Since EO12 took effect in February 2023, EV industry leaders have been campaigning for the inclusion of e-motorcycles under the executive issuance, questioning its intent and demanding its inclusion once the review takes place.

Under EO12, only e-motorcycles are still subject to a 30 percent import tax, while other types of EVs got reduced or removed from tariff rates.

According to the Statista Research Department, motorcyclists will account for approximately 7.81 million registered vehicles in the country in 2022, making them the most popular vehicle type among motorists.

Think tank Stratbase ADR Institute and advocacy network CitizenWatch Philippines have been actively advocating for tax breaks for e-motorcycles since 2023, noting their benefits to the country, environment, and economy, once integrated into the country’s traffic.

E-motorcycles’ zero emissions are one of their most emphasized traits, as the transportation sector alone is responsible for emitting 35.42 million tons of carbon dioxide in 2022, which contributes to climate change, data from Statista showed.

The Department of Energy also wants to increase the country’s EV fleet by 50%, or an additional 2.4 million units, in hopes of making the green transportation sector help cut down the country’s 35.42 million tons of carbon dioxide emissions in 2022, which contributes to climate change, data from Statista showed.

EO12 was enacted to complement the Electric Vehicle Industry Development Act (EVIDA) to create an industry for EVs in the country and help reduce carbon emissions, in compliance with the Philippines’ commitment to the Paris Agreement. It modifies the tariff rates for EVs to help mainstream their use among Filipinos.