The Department of Energy (DOE) in the Philippines anticipates a zero-tariff for all Electric Vehicle (EV) imports by the end of this year, expanding the reach of an executive order that previously applied only to four-wheeled vehicles.
Under Executive Order 12, signed by President Marcos in January 2023, four-wheeled EVs were granted a zero tariff. However, the DOE is now working towards expanding this privilege to encompass all types of EVs.
The current tariff exemption under EO 12 has already facilitated an increase in the import of four-wheeled EVs. With the anticipated expansion, other types of EVs such as minibuses, vans, buses, trucks, tricycles, motorcycles, and bicycles are set to enjoy the same benefits.
The potential tariff-free status is not just about boosting the EV market but also about developing infrastructure. According to the Department of Trade and Industry (DTI), zero tariffs on EVs will help drive investments in charging and distribution infrastructure, crucial for the wider adoption of EVs.
The Philippines, like many countries worldwide, is gradually shifting towards cleaner energy sources. The transport sector, being one of the largest contributors to greenhouse gas emissions, is a key area of focus in this transition. The use of EVs offers a practical solution to reduce these emissions while also offering cost savings to motorists.
As per a DOE official, the fuel consumption cost per kilometer stands at P1.67 for EVs, considerably lower than the P5.00 per kilometer for Internal Combustion Engine (ICE) vehicles. This cost-effectiveness, coupled with the environmental benefits, makes a compelling case for the increased adoption of EVs.
While the zero-tariff policy is a significant step, the DOE recognizes that it is only one part of the equation. The success of this initiative will also hinge on the availability of supporting infrastructure such as charging stations and service centers.
The anticipated approval of a zero-tariff for all EV imports in 2024 by the Philippines’ DOE can potentially stimulate the EV market, drive infrastructure development, and contribute to the country’s clean energy goals.
Image Source: Southeast Asia Infrastructure
