THE House of Representatives has approved on final reading a bill providing tax and duty exemptions on imported electric vehicles (EVs).
House Bill No. 10960 received approval from 196 lawmakers, with three against its passage and one abstention.
The tariff waiver covers imported two-, three- or four-wheeled EVs and their charging equipment from 2025 to 2030, bringing President Ferdinand R. Marcos, Jr.’s order removing tariffs on EVs closer to becoming law.
The exemption is designed to boost EV adoption, while also helping the Philippines make its transportation greener.
The measure also calls for a review on the import of capital equipment used for the manufacture and assembly of EVs for possible inclusion in the strategic investment priority plan.
Last year, Mr. Marcos issued an executive order that removed import duties on EVs until 2028. It was expanded by the National Economic and Development Authority Board in May to include electric motorcycles, tricycles, and hybrid EVs.
The Philippines is moving to decarbonize its transportation system, amid a target to reduce greenhouse gas emissions by 75% by 2030, in line with commitments made under the 2021 Paris Agreement.
The Department of Energy’s (DoE) roadmap for the wider adoption of EVs sets “specific targets and activities” to guide the transition towards electrified transportation.
An electric vehicle incentives scheme will likely be endorsed to Mr. Marcos by year’s end, giving the EV adoption campaign more impetus. The scheme is expected to result in the domestic manufacture of about four million EVs in the coming decade.
The proposed policy will likely contain incentives for consumers, such as purchase subsidies through financial rebates, discounts, tax credits, or value-added tax exemptions, the DoE has said. — Kenneth Christiane L. Basilio