DOE seeks temporary removal of import tariff on e-motorcycles

MANILA, Philippines — The Department of Energy (DOE) is seeking the temporary removal of import tariff on motorcycles to further accelerate electric vehicle (EV) adoption in the country.

“By eliminating the tariff rates for these items, we can provide consumers, in both private and public sectors, with greater opportunities to choose EVs over traditional vehicles,” Energy Secretary Raphael Lotilla said.

Lotilla said the DOE is currently awaiting feedback from the Tariff Commission on its proposal. “It will depend on the Tariff Commission,” he said.

A zero tariff for EVs under Executive Order 12 signed by President Marcos in January applies to four-wheeled vehicles.

Lotilla said the issuance of EO 12 which temporarily reduces the tariff rates to zero percent on completely built-up units of certain EVs for a period of five years is one of the government’s efforts to help improve EV adoption.

“In this era, we are connecting Filipinos to a low-carbon transport that is safe and green. To accelerate is to speed up, and together, we are working to speed up our journey towards mobility, innovation, and sustainability,” Lotilla said.

The energy chief said the transition to EVs is a key component to the decarbonization of the economy as envisioned by the President.

Globally, EVs are now becoming more mainstream over internal combustion engine cars given strong government policy and financial incentives, Lotilla said.

In Southeast Asia, he said Thailand dominates the EV volumes, accounting for 58 percent of the region’s EV sales, followed by Indonesia and Vietnam.

“Apart from replacing fossil fuels, the optimism around EVs is increasing because of their benefits in terms of increased energy efficiency and reduced local pollution,” Lotilla said.

“In the Philippines, as previously noted, the market for EVs has grown significantly and is expected to continue to grow over the coming years,” he said.

According to Lotilla, local EV sales jumped from 378 in 2020 to 843 in 2021, and further to 1,013 in 2022.

For the first quarter alone, he said the number has already surpassed the total EV sales for the last three years at 2,536.

“President Marcos has challenged us to imagine a future where, by 2040, half or more of all vehicles on our roads are electric, cutting our carbon dioxide emissions by 1.9 million tons,” Lotilla said.