EV stakeholders worry over EO 12 mandatory review

Worry is mounting over stakeholders in the electric vehicle (EV) industry as the Tariff Commission (TC) has yet to initiate communication on the public hearings for the mandatory review of Executive Order (EO) No. 12.

Issued in January 2023, EO No. 12 — orders a review of the lower tariff rates for EVs and their components. Its mandatory review started on Feb. 21.

NEDA Chief Arsenio Balisacan last week said TC will start the public hearings on the EO which will “carefully consider all the views of the industry stakeholders”.

However, EV industry players said they remain clueless about the public discussions after the TC failed to release to the intended participants the necessary details of the public hearings.

Electric Vehicle Association of the Philippines (EVAP) President Edmund Araga stated that NEDA has not yet contacted the organization to solicit feedback or extend an invitation to participate in a public hearing.

They were initially invited in 2022 when EO 12 was still being developed.

"Unfortunately, we were not invited to be part of the review," Araga said in a text message.

Electric Kick Scooter Philippines co-founder Tim Vargas likewise said that NEDA has yet to reach out to his group. He said they filed a position paper to the agency regarding their proposed amendments for EO12 but have yet to receive a formal reply.

Section 1608 of the Tariff and Customs Code of the Philippines,  otherwise known as the Flexible Clause, states that before any recommendation is submitted to the President by the NEDA, the TC shall first conduct an investigation and public hearings wherein interested parties shall be afforded the opportunity to be heard.

EO12 was enacted to complement the Electric Vehicle Industry Development Act (EVIDA) to create an industry for EVs in the country and help reduce carbon emissions, in compliance with the Philippines' commitment to the Paris Agreement. It modifies the tariff rates for EVs to help mainstream its use among Filipinos.

Under the EO, EVs such as kick scooters, pocket motorcycles, and self-balancing cycles are included in the tax breaks. Two-wheeled electric vehicles, on the other hand, are still subject to 30% import duty.