CAMPI lauds tariff break to more EVs

MANILA, Philippines — “CAMPI will support the regular review of EO 12 so that we can leverage this temporary measure toward achieving the EV penetration targets under the Comprehensive Roadmap for the Electric Vehicle Industry.”

The local automotive industry believes that the decision of the government to expand of the type of electric vehicles (EVs) entitled to lower tariffs will further encourage the use of environment-friendly vehicles in the country.

Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez said the group welcomes the decision of the National Economic and Development Authority (NEDA) Board to expand the coverage of Executive Order (EO) 12 to include other EV types, particularly hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs).

EO 12, which came into effect in February 2023, brought down the import duties of certain EVs as well as parts and components to zero from the previous five to 30 percent, for a period of five years.

The NEDA Board’s recent approval of the expanded EO 12 coverage will allow more EVs to enjoy zero tariffs until 2028.

“CAMPI adopts an inclusive approach to vehicle electrification, recognizing that all EV technologies – HEV, PHEV and battery electric vehicle can contribute to the broader policy objectives of energy security and greenhouse gas emission reduction,” Gutierrez said.

He said the group believes the temporary reduction of the most favored nation tariff to zero percent until 2028 would help reduce the costs of EVs and improve EV adoption in the country.

With more EV types enjoying zero tariffs, he said CAMPI members would continue to offer various EV options to enable customers to choose a vehicle that fits their needs and economic situation.

According to Gutierrez, the group would also provide support in the annual review of the EO.

“CAMPI will support the regular review of EO 12 so that we can leverage this temporary measure toward achieving the EV penetration targets under the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI),” he said.

The CREVI, which serves as the national development plan for the EV industry, provides short, medium and long-term targets to address barriers being faced.

Targets under the CREVI are based on two scenarios, with a minimum 10 percent target EV share for all sectors, excluding EV trucks, by 2040 set under the business-as-usual scenario.

The clean energy scenario, meanwhile, sets a more ambitious target of refleeting at least 50 percent of all fleets with EVs by 2040.