Tax breaks for e-motorcycles a step towards 'green traffic' —Stratbase

Electric motorcycles' inclusion in the tax breaks speed up "green traffic" in the Philippines which can lower fuel costs, according to international think tank Stratbase.

"E-motorcycles' inclusion in the tax breaks would not only help ease traffic, be more economical, and reduce the reliance on fossil fuel, but will also help Filipinos choose "to do the environmentally right thing" while addressing their transportation and mobility needs," Stratbase ADR Institute President Professor Dindo Manhit said in a statement released on Wednesday.

Manhit said the organization supports the House of Representatives Committee on Ways and Means Chairman Representative Joey Salceda's House Bill 9573 which seeks "to amend further Republic Act ("RA") No. 11697 or the Electric Vehicle Industry Development Act (EVIDA).

Under EO No. 12, only kick scooters, self-balancing cycles, bicycles, and pocket motorcycles with auxiliary motors not exceeding 250w and with a maximum speed of 25 km/hour have 0% import duties.

On the other hand, electric motorcycles are still subject to a 30% tariff rate.

"We have to create opportunities for more Filipinos to live sustainably with affordable electric vehicles," Manhit said.

He further mentioned that 60% of all EVs in the country are two-wheeled and have not benefited from tax breaks under EO 12.

Meanwhile, National Economic and Development Authority (NEDA) Chief Arsenio Balisacan said that the possible inclusion of motorcycles in the tax break would take center stage in the deliberations starting February 2024, one year after EO 12 took effect.

The enactment of the Electric Vehicle Industry Development Act (EVIDA) is one of the government's ways to help decarbonize the Philippines by creating an industry for EV adoption in the country. This is complemented by EO 12, which paved the way for a six-fold increase in sales of EVs in the first quarter of 2023.

The Electric Vehicle Association of the Philippines (EVAP) estimates that registered EVs in the Philippines can reach 6.6 million by 2030. —Sherylin Untalan/ VAL, GMA Integrated News