Amidst the high prices of fuel worldwide as well as a global commitment to reduce the carbon footprint, multiple automakers have committed to fully-electric lineups within the next decade or so. It seems that electric vehicles or their hybrid variants are gaining traction among consumers for these very reasons. As such, the government has also done its part to incentivize ownership of this expensive yet beneficial next-generation technology. Here’s how EV tariffs on unit and parts sales have just been eliminated in the Philippines.
At first, it was the complete exemption of EVs and hybrids from the number coding scheme. Now, the current President of the Philippines Ferdinand Marcos Jr. has just approved the removal of tariffs on EV transactions in the Philippines. This cuts the previous 5-30% governmental markup on an assortment of electric forms of transport, such as passenger cars, buses, vans, trucks, motorcycles, and bicycles, and the like.
The aim of this is to encourage consumers to shell out for these costly EVs by leveling the financial playing field a bit more with their non-electric counterparts. “The executive order aims to expand market sources and encourage consumers to consider acquiring EVs, improve energy security by reducing dependence on imported fuel, and promote the growth of the domestic EV industry ecosystem,” Economic Planning Secretary Arsenio Balisacan told a news conference.
In a surprising move, this removal of tariffs on EV products in the Philippines does not carry over to hybrids and the like. While these still do consume fuel like an internal combustion variant would, these are far friendlier to the environment than your typical ICE vehicle. They’re also a perfect entry point for those who want to give the battery-powered life a try but don’t want the range anxiety that comes with it.
Still, it’s amazing that EV products will now be sold in the Philippines with no tariffs. This further opens up the potential of an electrified future, especially for the few players in such a young local market. Some automobile brand executives believe that the infrastructure for EVs in the country will only get better, and people will eventually understand that their misconceptions regarding these vehicles simply aren’t true. Until then, we’re looking forward to watching this vehicle segment flourish.