EV group appeals for inclusion of e-motorcycles on tax breaks

A group advocating the use of electric vehicles (EVs) in the country on Tuesday called on the National Economic and Development Authority (NEDA) to recommend the inclusion of e-motorcycles in an executive order (EO) granting lower tariff rates for EVs, their parts, and components. 

Issued in January 2023, EO No. 12 — which orders a review of the lower tariff rates for EVs and their components — is up for its mandatory review starting Wednesday, February 21. 

With the impending review, the Electric Kick Scooter (EKS) Philippines appealed to NEDA Chief Arsenio Balisacan to suggest amendments to the EO to include e-motorcycles. 

"It's important to give them what's due them. We're looking forward and we also laud the humility of the NEDA, Rep. Salceda, and some people in the executive branch that they saw that this review is an opportunity to improve what has been delivered before," EKS co-founder Tim Vargas said. 

"But hopefully, moving forward, we need to have more stakeholder engagement and try to understand further rather than making this impulsive decision on just hastily passing things rather than being more constructive," Vargas added.

Under EO 12, e-motorcycles are still subjected to a 30% tariff rate, while only two-wheeled e-vehicles not exceeding 250w and with a maximum speed of 25 kilometer per hour have 0% import duties. 

Balisacan last year said the mandatory review would focus on the possible inclusion of electric motorcycles in the import tariff exemption, as he said this would “help Filipinos choose sustainable means of transportation.”

“The inclusion of e-motorcycles in the import tariff incentives will take center stage once the mandatory review of Executive Order No. 12 Series of 2023 takes effect nine months from now,” he said last May.

Albay Representative Joey Salceda has filed a bill which aims to include electric vehicles in the list of electric transportation exempted from import duties, as these are the most affordable electric vehicles, and may be a possible solution to congestion.

"Some 60% of electric vehicles are two-wheeled, meaning that the vast majority of electric vehicles do not benefit from the tax incentives granted under the law... encouraging electric cars while locking out electric motorcycles does not address congestion issues, but merely substitutes petroleum-fueled cars for their space on the road," Salceda said. —NB, GMA Integrated News