Plan to scrap 30% duty on imported EVs laid out

MANILA, Philippines — The Tariff Commission (TC) is holding a public hearing on May 12 to look into the merits of the proposed temporary lifting of the 30 percent tariff on electric vehicle (EV) imports to help encourage its adoption.

In a notice issued by the TC, it said the public hearing on the temporary removal of the most favored nation tariff rates on identified EVs and parts or components.

This is in line with the exercise of TC’s functions to study the impact of tariff policies and programs on national competitiveness and consumer welfare and to provide the President and Congress with independent analysis, information and technical support on matters related to tariff and non-tariff measures.

“Interested parties shall be afforded opportunity to be present and present evidence in support of their position/s on the matter,” the TC said.

The TC is giving interested parties until May 16 to submit their position papers.

Trade Secretary Ramon Lopez earlier said the agency is pushing for the removal of the tariff on EV imports before the end of the term of the current administration.

Should this be put in place, Lopez said the impact would likely be seen towards the second half of the year.

Lopez added that bringing down the tariff imposed on EV imports to zero would lower the price and encourage the usage of these vehicles.

Apart from helping lower the consumption of fuel products, the Secretary of the Department of Trade and Industry (DTI) said EVs are good for the environment as these help reduce greenhouse gas emissions.

Promoting EVs and expanding charging stations form part of the proposed interventions of the government to mitigate the effects of the ongoing conflict between Russia and Ukraine on prices including fuel products.

As part of the push for EVs, the DTI has proposed the issuance of an executive order that would allow funds for the third unused slot under the Comprehensive Automotive Resurgence Strategy (CARS) program to be rechanneled to EV manufacturing.

Under the CARS program, a participant may get P9 billion worth of fiscal support in exchange for investments in vehicle manufacturing.

At present, the program has two participants. These are Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp.