NEDA mulls tax breaks for e-motorcycles, hybrid vehicles

ELECTRIC MOTORCYCLES (e-motorcycles) and hybrid vehicles may finally receive tax breaks, as the government reviews an executive order granting incentives for electric vehicles (EV).

The National Economic and Development Authority (NEDA) said on Tuesday that government agencies began discussions on the possible expansion of Executive Order (EO) No. 12 to include e-motorcycles and hybrid vehicles.

“The review shall carefully consider all the views and comments of stakeholders, taking into account the current market conditions. The review aims to ensure that we meet the policy objectives of EO 12 by further encouraging the adoption of EVs and fostering the growth of the domestic EV market,” the NEDA said in a statement.

President Ferdinand R. Marcos, Jr. on Feb. 20, 2023 signed EO 12, which imposed zero tariffs on different types of EVs in order to promote green transport and cut carbon emissions.

Under the EO, tariffs for EVs and their parts and components were temporarily removed for five years. Prior to the order, tariff rates for some EVs ranged from 5-30%. However, the EO did not include two-wheeled EVs.

“Pursuant to Section 2 thereof, which provides for the review of the EO after one year of implementation, the Tariff Commission shall be requested to conduct a public hearing for this purpose,” NEDA said.

The review will follow the tariff modification process under the Customs Modernization and Tariff Act. The results of the review will be presented to the Committee on Tariff and Related Matters and the NEDA Board, which is chaired by the president.

“NEDA calls on interested parties to participate in the public hearing and share their insights on the implementation of this crucial policy, which aims to enhance the country’s energy security as we strive for social and economic transformation in the coming years,” the agency said.

Industry stakeholders earlier called for the inclusion of e-motorcycles in EO 12.

Last year, House Ways and Means Committee Chair and Albay Rep. Jose Ma. Clemente S. Salceda filed House Bill No. 9573 which seeks to include e-motorcycles in the list of EVs that will benefit from tax incentives.

Mr. Salceda has said that e-motorcycles are more affordable and will have less of an impact on traffic congestion.

The Department of Energy (DoE) aims to raise the share of EVs in the Philippines to 10%, or in excess of the 5% required by Republic Act No. 11697, or the Electric Vehicle Industry Development Act.

By 2028, the DoE expects about 2.45 million EVs on the road, including cars, tricycles, motorcycles, and buses, with an installation target of 65,000 EV charging stations. — Beatriz Marie D. Cruz