Clean air advocates and electric vehicle (EV) industry stakeholders are urging National Economic and Development Authority chief Arsenio Balisacan to immediately conduct the mandatory review of Executive Order No. 12 and recommend amendments that will hasten the country’s shift from fossil-fueled cars to an electricity-run transport system.
EO12, which was uploaded in the Official Gazette last Jan. 19, 2023 and took effect on Feb. 20, 2023, refers to the temporary modification of the rates of import duty on electric vehicles, parts, and components under the Customs Modernization and Tariff Act, which was earlier criticized by some EV industry players for having excluded e-motorcycles from the import tax breaks.
Under Section 2 of the executive order, “the Most Favored Nation (MFN) tariff rates shall be subject to review after one (1) year from the implementation of this Order. For this purpose, the NEDA shall submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter.”
With EO12 up for review starting today (Feb. 21, 2024), the challenge reportedly now lies in the collaborative efforts of Balisacan and all stakeholders to break the reliance of both public and private transport sectors on gas-fueled vehicles and move towards what the environmentalists are fighting for – the “green traffic.”
According to Electric Kick Scooter (EKS) Philippines co-founder and Chairman Tim Vargas, “it is high time that e-motorcycles receive tax breaks, as it is a privilege that was initially deprived of them.”
Vargas was referring to EO 12 series of 2023, which modifies the tariff rates for certain types of EVs and their parts and components to mainstream EV usage in the country and help cut down carbon emissions.
“It’s important to give them what’s due them. We’re looking forward and we also laud the humility of the NEDA, (Albay) Rep. (Joey) Salceda, and some people in the executive branch that they saw that this review is an opportunity to improve what has been delivered before,” Vargas said in an interview.
“But hopefully, moving forward, we need to have more stakeholder engagement and try to understand further rather than making this impulsive decision on just hastily passing things rather than being more constructive,” he added.
Except for e-motorcycles, which are still subject to 30 percent tariff rates, EO12 temporarily lowered the tariff rates for numerous types of EVs from five to thirty percent to assist the nation in adjusting to the use of EVs and reducing carbon emissions.
The executive issuance was enacted to help complement the Electric Vehicle Industry Development Act (EVIDA), to help Filipinos adapt faster to green technologies, and to help the country with its commitment to the Paris Agreement to shift to green transport.
Meanwhile, lawyer and mobility advocate Vin Ching also urged the government to help the Filipino working class afford the transition to EVs. The revision of EO12 to be more inclusive was echoed by stakeholders of the EV world, noting its reportedly “unfair” exclusion before.
“We urge our good government to consider the positive impact, especially that the inclusion of e-motorcycles will benefit those in the working class, those who need transportation,” Ching said.
Ching also said that motorcycles inclusion in the list of EVs benefitting from tax breaks will give “true meaning” to the essence of EO12, as motorcycles hold the majority of number among motorists in the country.
“And by providing benefits to them, it will be a highly popular move by this administration. And It will also highly be necessary to give true meaning to the intent and purpose of the EVIDA law and [EO12],” he added.
According to the NEDA, EO12 is up for review starting today, a year after it took effect.
Balisacan had previously said discussions would be more centered on giving e-motorcycles tax breaks.
