NEDA Approves EO Reducing E-Vehicle Tariffs

The National Economic and Development Authority (NEDA) Board approved an executive order (EO) that modifies the current tariffs on electric vehicles (EVs) in a bid to promote consumer purchase of eco-friendly vehicles.

According to Socio-economic Planning Secretary Arsenio Balisacan Thursday, the endorsement for the EO was made during NEDA’s first meeting of the agency under the Ferdinand “Bongbong” Marcos Jr. administration.

Balisacan added that EVs covered by the tariff modification include “passenger cars, buses, minibuses, vans, trucks, motorcycles, tricycles, scooters, and bicycles, among others, including EV parts and components.”

However, hybrid vehicles will not be included in the tariff modification.

“In particular, the EO will temporarily reduce the most-favored nation (MFN) tariff rates to zero percent for five years and completely built-up or CBU units of second EVs, except for hybrid-type EVs,” Balisacan added.

Balisacan pointed out that the tariff modification on EV parts and components will drop from five percent to one percent for five years.

The EO aims to promote the purchase of EVs as the Philippines moves to grow the domestic EV industry and rely less on imported fuel.

This comes as Marcos Jr. steers the country to a “green” post-pandemic recovery.

Speaking during the retreat session of Asia-Pacific Economic Cooperation (APEC) earlier this month, Marcos called for neighboring countries to support a transition to more eco-friendly solutions.

Moreover, the NEDA board also approved guidelines on the processing of public-private partnership proposals, aiming to harmonize the NEDA board along with the review and proposals of the Investment Coordination Committee. (GFB)