Finance Secretary Ralph Recto is in favor of granting reduced excise tax and preferential tariff to hybrid vehicles.
In an interview following the recent induction of the 2024 officers of the Economic Journalists Association of the Philippines (EJAP), Recto acknowledged the need to reduce the price of hybrid vehicles to make them more affordable to people.
While admitting that the policy decision over the tax and tariff treatment for hybrids is really under the purview of the Department of Trade and Industry, Finance Secretary Recto expressed his view in favor of extending equal preferential zero tariff for both hybrid and electric vehicles.
However, Recto is proposing a different excise tax structure for hybrid electric vehicles (HEVs) of 50 percent as opposed to the zero excise tax for EV vehicles.
Cutting the tariff to zero for both hybrids and EVs and imposing a two-structure excise tax for hybrid and EVs, Sec. Recto argued, “would bring the price down, so everyone is happy, and people would have an option for hybrid and electric.”
Furthermore, he pointed out, the government cannot really expect to collect a significant amount of revenue from imposing higher excise tax on hybrids since only a small number of vehicles would likely be sold as they are still too expensive for most people to afford.
EO 12 review
The National Economic and Development Authority (NEDA) is already reviewing Executive Order 12 which grants a five-year preferential tariff relief to EVs supposedly to facilitate the swift buildup of a charging infrastructure to support the complete shift to the environment-friendly EVs and encourage local production of such vehicles.
Unfortunately, EO 12 does not apply to HEVs which do not need recharging. Thus, the DTI does not support the inclusion of HEVs for temporary tariff relief.
On the other hand, the Chamber of Automotive Manufacturers of the Philippines or (CAMPI), whose members are introducing transitional HEVs, argue that their option could lead to more widespread adoption and shift away from fossil fuel burning vehicles.
The shift to EVs, unfortunately, is stalling in the United States which now finds itself in strong competition with Chinese EV manufacturers which are making headway in the European market with more competitively priced EVs.
Japan, along with the US, is also in the same boat of being behind in the production of EVs, as Japanese automakers continue to look into alternative options as it fears a monopoly in EV and EV battery production by China which controls more than 90 percent of rare earth metals crucial for the production of EVs and their battery component.
Recto eyes EV vehicle
While Finance Secretary Recto supports extending some relief for hybrids as a transitional vehicle, he admits that he himself would shift to an electric vehicle for his next purchase, even though he already has quite a notable collection of cars that includes vintage cars, a Mazda Miata, a Porsche and a Lexus.
However, for his next purchase, Recto revealed that his preference is a Tesla, specifically its space-age looking Cybertruck that motor vehicle enthusiasts are already eagerly waiting for because of its armored truck look, stainless steel, chip resistant coating, shatter resistant windshield, that according to its promotional materials is “built for any planet,” can travel 340 miles on a single charge, and can carry a payload of up to 2,500 pounds and even tow up to 11,000 pounds!
According to Sec. Recto, the bullet-proof, “cyberbeast engine” Tesla Cybertruck, because it is an EV, would cost much cheaper than a high-end six cylinder, turbo diesel sports utility vehicle.
Both HEVs and EV, additionally, are not subject to the number coding traffic scheme.
60th anniversary of Malaysia-Phl diplomatic relations
The Malaysian Embassy and the Philippine Embassy in Kuala Lumpur recently announced the winners of the logo design contest launched on Feb. 1 this year to commemorate the 60th anniversary of diplomatic relations between the two countries.
Among the 54 entries, the panel of judges selected three outstanding designs, all by talented Filipinos based in the Philippines. Jayven Villamater bagged the top prize with a design reflecting the Sampaguita and Bunga Raya, the national flowers of the Philippines and Malaysia, respectively.
Winning logo
The intertwined flowers symbolize the shared history, culture and heritage of both nations as brothers and sisters in the ASEAN region. His design will be adopted as the official logo for the 60th anniversary of diplomatic relations between the two countries.
Villamater will receive a cash prize of P 35,500 and a roundtrip ticket to Kuala Lumpur, Malaysia, courtesy of AirAsia Philippines.
In second place is Patricia Joyce Basmayor who will receive P25,000. The third spot went to Kent Michael Telebanco who will get a cash reward of P15,000.
An awarding ceremony will be held to formally recognize the winners and award them their certificates and prizes.