President Ferdinand Marcos Jr. has issued an executive order temporarily modifying the rates of import duty on electric vehicles, parts, and components.
According to Executive Order No. 12, the said articles shall be subject to Most Favored Nation rates of duty.
The National Economic Development Authority Board on November 24, 2022, endorsed the temporary reduction of MFN tariff rates on certain electric vehicles, their parts, and components for five years.
The EO said, "temporarily modifying the rates of import duty on electric vehicles, and their parts, and components will help boost the electric vehicle market in the country."
It is also expected "to support the transition to emerging technologies, and encourage consumers to consider electric vehicles as a cleaner and greener transportation option."
The EO cited Republic Act NO. 11697 or the Electric Vehicle Industry Development Act, which declared it a state policy to ensure the country's energy security and independence by reducing the reliance on imported fuel for the transportation sector.
The law also provided for the state to enable the development of electric vehicles, including options for micro-mobility as an attractive and feasible mode of transportation.
The EO also mentioned that Republic Act No. 10863 of the Customs Modernization and Tariff Act empowered the President to increase, reduce, or remove existing rates of import duty in the interest of the general welfare and national security, and upon the recommendation of the NEDA. —Richa Noriega/NB, GMA Integrated News