Electric Vehicles To Benefit From Lower Tariffs In The Philippines

Electric Vehicles To Benefit From Lower Tariffs In The Philippines

Electric vehicles (EV) will soon be more affordable in the Philippines because the NEDA Board just approved a tariff reduction for EVs.

The biggest tipping point for electric vehicles (EV) in the Philippines is about to happen. The National Economic Development Authority (NEDA) Board just approved today the modification of tariffs on EVs as well as its parts and components as a way to spur demand for zero-emissions vehicles.

In its first meeting under the administration of President Ferdinand R. Marcos, Jr., the NEDA Board endorsed the Executive Order that’s set to modify tariff rates on certain EVs such as passenger cars, buses, mini buses, vans, trucks, motorcycles, tricycles, scooters, and bicycles, among others, including EV parts and components.

The goal of the EO is to temporarily reduce the Most Favoured Nation (MFN) tariff rates to zero percent for five years on Completely Built Up (CBU) units of certain EVs. Currently, tariffs range from five to as much as thirty percent. On the other hand, tariffs on certain parts and components of EVs will also be reduced from five percent to just one percent for five years. The NEDA Board also indicated that the tariff modification shall be reviewed after one year of implementation as a way to assess its impact on the development of the country’s EV industry ecosystem.

Electric Vehicles To Benefit From Lower Tariffs In The Philippines

Data from the United States’ International Trade Administration indicates that the Philippines currently only has 9,000 EVs–less than one percent of the total vehicles in the country. Most of these are also owned by wealthy families. Currently, the most affordable pure electric vehicle in the Philippines is the BYD Dolphin, which retails for P1,798,000, and has a claimed range of 405 kilometers from a 44.9 kWh lithium-ion phosphate battery pack.

Now, as for hybrid electric vehicles (HEV) like what Toyota and Lexus currently sell, their tariffs will remain unchanged. Though through the Electric Vehicle Industry Development Act (EVIDA), HEVs and EVs already benefit from number coding exemptions and discounted vehicle registrations of 30 percent for EVs and 15 percent for HEVs.

With the Philippine government finally reducing the tariffs on EVs, will this finally convince you to buy one?

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