Tax breaks for 2-wheeled EVs still unclear – stakeholders

MANILA, Philippines –– Advocates of two-wheel electric vehicles (EVs) are still awaiting updates on the amendment of an executive order that will address the exclusion of two-wheel EV variants in the granting of tax incentives.

The amendment of Executive Order No. 12 remains unclear as the National Economic and Development Authority (NEDA) still has not released details on whether the review process has begun since it became mandatory on February 21. 

In a text message, mobility advocate and Electric Kick Scooter (EKS) Philippines co-founder and Chairman Tim Vargas, said that they have submitted their suggestions to NEDA regarding EO12 but has not received a reply as of writing. 

Meanwhile, Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga said that "Unfortunately, we were not invited (by NEDA) to be part of the review."

This as the executive issuance granting tax breaks to several types of EVs, EO12, series of 2023, is now up for mandatory review and possible revision, upon recommendation by the NEDA, a year after it took effect last February 20, 2023.

EO12 gives tax breaks to several types of EVs and their parts and components, with the exclusion of e-motorcycles, which are still subject to a 30% tariff rate. The executive issuance received criticism from different stakeholders when it was enacted, noting the “unfair” exclusion of e-motorcycles in the tax breaks, unlike other types of EVs. 

According to the Department of Trade and Industry, NEDA's findings and recommendations regarding EO12's will be submitted to the Office of the President for possible revision through the year of its implementation. 

Different stakeholders of the EV industry in the Philippines have been urging NEDA to include giving tax breaks to e-motorcycles when the agency holds its mandatory review, citing the benefits it can do to address the country’s problem with its carbon emissions and helping the majority of motorists in the country, motorcycle riders, with their shift to green transportation.