EVAP seeks inclusion of e-motorcycles in tax break

The Electric Vehicle Association of the Philippines (EVAP) joined calls for the inclusion of electric motorcycles in the import tax breaks, saying such vehicles could be a “game changer”.

EVAP President Edmund Araga said the government should not be “car-centric” and also include e-motorcycles in an executive order (EO) granting lower tariff rates for electric vehicles (EVs), their parts, and components.

"We are very vocal that with the proliferation of [EVs] in the Philippine setting, kailangan na kailangan din 'yang mga [e-motorcycles] na 'yan,” said Araga in a statement.

(We are very vocal that with the proliferation of EVs in the Philippine setting, we really need these.)

“Most of the consumers can afford to buy two wheels and three wheels, and not on the four wheels... mahirap kung ang basis natin ay nasa four wheels lang," Araga added.

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.

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 km/hour have 0% import duties under the EO.

"This would really be a game-changer kung talagang naisama ito [e-motorcycles on EO12]... We have to strike a balance out of these rules and regulations in order for us to secure and make sure that the application is in place," said Araga.

EV group Electric Kick Scooter Philippines earlier asked the National Economic and Development Authority (NEDA) to include e-motorcycles in the tax break.

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 filed a bill that would 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. — DVM, GMA Integrated News