NEDA Board endorses EO modifying tariffs on certain electronic vehicles
The National Economic and Development Authority (NEDA) Board endorsed on Thursday an executive order which will implement tariff modification on certain electric vehicles and its parts and components for approval to President Ferdinand Marcos Jr.
The measure aims to help reduce carbon emissions and dependence on oil. Balisacan said the tariff for e-vehicles range from 5 percent to 30 percent.
"In its first meeting under the administration of President Ferdinand R. Marcos, Jr. the NEDA Board endorsed the EO or executive order modifying tariff rates on certain electric vehicles or EVs such as passenger cars, buses, mini buses, vans, trucks, motorcycles, tricycles, scooters and bicycles among others, including EV parts and components," NEDA Secretary Arsenio Balisacan said in a Palace press briefing.
"The EO will temporarily reduce the most-favored nation (MFN) tariff rates to zero percent for five years and completely build-up or CBU units of certain EVs, except for hybrid-type EVs," he said.
"It will also implement tariff modification on certain parts and components of EVs from five percent to one percent for five years," he added.
Balisacan said "EO aims to expand market sources and encourage consumers to consider acquiring EVs, improve energy security by reducing dependence on imported fuel, and promote the growth of the domestic EV industry ecosystem."
"We want to encourage the adoption, the use of e-vehicles because that will address pollution issues and, of course, adaptations to climate change; and we believe that’s the future," he said.
"More importantly, we want to be part of the value chain globally in this drive to get to these new industries, new growth drivers. And hopefully, we can develop our own industries, and this reduction in tariff is part of that building up of the ecosystem," he added.
Balisacan said the effect of the EO will be reviewed after a year for possible reconfiguration of its system.
"The NEDA board also indicated that the tariff modifications shall be reviewed after one year of implementation with a view to assessing its impact under the development of the EV industry ecosystem," he said.
Balisacan also noted that the reduction of tariff will "certainly help" in addressing the continued oil price hikes.
"This will certainly help. But I think it’s also a longer perspective, you know, because the world is changing as you know, we are moving and the world is moving into a more environmentally clean system of transportation, production," he said.
"I think this is a way for us to be part of the change and, you know, not be left out in that ecosystem," he added. Robina Asido/DMS