EO on temporary zero tariff for EVs, spare parts a boon for consumers - group

The Electric Vehicle Association of the Philippines (EVAP) on Friday welcomed the issuance of an executive order that temporarily modified the import duty rate on electric vehicles, parts, and components to zero for a period of five years.

"Finally our EV industry will totally roll out in line with Executive Order No. 12 of PBBM (President Bongbong Marcos) as it opens a very good opportunity for those interested EV enthusiasts and advocates to own one," EVAP president Edmund Araga said in a statement.

"Consumers will experience a wide array of models to choose from depending on their preferences," he added.

Marcos issued EO No. 12 which modified the tariff rate on electric vehicles, parts, and components to zero for five years, nearly two months after the National Economic and Development Authority Board endorsed the temporary reduction on import duty. 

The EO cited Republic Act 11697 or the Electric Vehicle Industry Development Act (EVIDA), 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.

"As we all know, we now rely on importation of EV vehicles, specifically EV cars for personal mobility, which is far better than owning an internal combustion engine or even a hybrid," Araga said.

"This will pave the way for supporting the EVIDA law or RA 11697 that makes the industry a promising one," he added.

According to the EVAP, 13,934 EVs have been sold in the Philippines to date. —VBL, GMA Integrated News