Source：Gasgoo
The Philippines has extended its zero-tariff policy on electric vehicles and components until 2028 to wean the country off fossil fuels and boost its electric vehicle market, the Philippine government’s economic Commission said on May 16.
The commission, chaired by President Ferdinand Marcos Jr., also expanded the scope of preferential tax rates to include hybrid cars, electric motorcycles and electric bicycles.
Image source: BYD
Marcos first approved the reduction of most-favoured-nation tariffs to 0% on electric cars, vans and buses in January 2023. Previously, import duties on these vehicles ranged from 5 percent to 30 percent.
Marcos, whose term ends in 2028, has put renewable energy and combating climate change at the heart of his policy agenda. The Philippines is more vulnerable to extreme weather events, so Marcos wants to promote cleaner energy alternatives in the country. In line with its commitments under the Paris Agreement, the Philippines aims to reduce greenhouse gas emissions by 75% by 2030.
Currently, the Philippines’ automotive industry is largely dependent on imported fuel. The country also buys oil and coal from abroad to meet its power generation needs, making it vulnerable to price fluctuations.
“By encouraging consumers to adopt electric vehicles, we are promoting a cleaner, more resilient and environmentally friendly mode of transportation,” said Arsenio Balisacan, Secretary of Economic Planning of the Philippines.
The zero duty rate on electric vehicles will be reviewed annually to ensure its impact on the country’s electric vehicle market.
