Solon pushes EVIDA law amendments

Party-List Representative Margarita Nograles recently filed House Bill 9574 seeking to amend certain provisions of the Electric Vehicle Industry Development Act which excluded the two-wheeled electric vehicles from certain import tariff exemptions.

EVIDA is a law enacted in July last year to promote and accelerate the development, manufacturing, utilization, and commercialization of electric vehicles in the country and it recognizes the importance of EVs in reducing dependence on fossil fuels, mitigating climate change and promoting sustainable transportation options.

The measure also aims to create an enabling environment for the growth of the EV industry, increase the adoption of EVs, and contribute to sustainable development and environmental conservation.

But despite the huge share of two-wheeled electric vehicles with four-wheeled

electric vehicles in the market, Nograles said that the current tariff structure imposes higher upfront costs on electric two-wheelers, making them less economically attractive to consumers compared to conventional gasoline-powered two-wheelers. 

"This situation creates a significant barrier to the growth of the electric vehicle industry, impeding environmental sustainability efforts and hindering the transition to clean transportation," Nograles said.

The lawmaker said that she is pushing to temporary decrease of the Most Favored Nation tariff rates which pursues introduction of a temporary reduction in the MFN tariff rates for all electric vehicles.

It also includes lowering the tariff burden enhances the affordability and competitiveness of electric vehicles, more particularly two-wheelers, making them a more attractive option for consumers. The temporary nature of this reduction recognizes the need to provide immediate support to the industry while allowing for a reassessment of tariff rates in the future.

The proposed amendment also calls for a Zero Percent MFN Tariff Rate which proposes the demand for a zero percent MFN tariff rate on two-wheeled electric vehicles for the next five years. 

"This striving measure aims to eradicate tariff-related barriers entirely, signaling a strong commitment to promoting the growth of the electric vehicle market. By demanding a zero percent MFN tariff rate, the amendment aligns with global efforts to incentivize the adoption of clean and sustainable transportation," Nograles said.

Nograles also said the proposed amendment aims to briefly reduce tariff rates and demands a zero percent MFN tariff rate for two-wheeled electric vehicles.