E-vehicle group sees tariff break as ‘game changer’

MANILA, Philippines —  The Electric Vehicle Association of the Philippines (EVAP) is batting for the inclusion of e-motorcycles in the grant of tax incentives under Executive Order 12 that is already due for mandatory review.

In an interview, EVAP president Edmund Araga said the Philippines should not be “car-centric” and should instead take into consideration the majority of road users in the country, which are motorcycle riders.

According to the Statista Research Department, the Philippines has a total of 7.81 million registered motorcycles and tricycles, which holds the majority of motorists plying the country’s roads.

“We are very vocal that with the proliferation of e-vehicles in the Philippines setting, we really need the e-motorcycles. In fact, most consumers can afford to buy two-wheeled and three-wheeled, and not the four-wheeled type,” Araga said.

EO 12 modified the tariff rates for certain types of EVs and their parts and components for five years to help mainstream green transportation in the country. However, e-motorcycles are currently excluded in the list of EVs benefiting from the tax break, and thus are still subject to 30 percent tariff. The executive issuance is now up for review, a year since it took effect on Feb. 20, 2023.

According to Araga, giving tax breaks to motorcycles would be a game changer in the country’s traffic, but noted that their entry should also be properly monitored and documented to avoid their improper use on the road.

“We have to strike a balance out of these rules and regulations in order for us to secure and make sure that the application is in place,” he said.

Araga is also advocating for the localization of e-motorcycle production, noting that the government should look into a win-win situation for producers and consumers of e-motorcycles in the country.

“What we are pushing is bringing a manufacturing plant that is capable of assembling units here. We are working tirelessly to lure investors to come here and produce EVs, in particular, the two-wheels,” he added.