Electric vehicles sales increase seen

The adoption of Electric Vehicles in the country is gaining ground as Filipinos increasingly cater to eco-friendly modes of transportation amid the country's effort to push for the electrification of transport.

This comes as a report by the Electric Vehicle Association of the Philippines revealed a six-fold increase in EVs in the country in the first quarter of 2023, as the group projects around 6.6 million EV sales in the country by 2030.

Part of the push for the adoption of EVs in the country is the enactment of Executive Order 12 series of 2023, which modifies the tariff rates for certain EV types and their parts and their components to zero, with the exclusion of e-motorcycles which are still subject to 30% tariff rates.

EO12 was enacted to complement the Electric Vehicle Industry Development Act to create an industry for EVs in the country and help reduce carbon emissions, in compliance with the Philippines' commitment to the Paris Agreement.

Under the executive issuance, e-motorcycles are the only type of EV not included in the list that receive tax savings under EO12, which gained the ire of different industry stakeholders.

Part of the concern is catering to the majority of stakeholders in the Philippines, which are motorcycles, and helping them better afford the shift to EVs quicker.

A study by global research and consulting firm Frost & Sullivan titled “The Future of Electrified Vehicles in Southeast Asia” showed that Filipinos are receptive to the shift to EVs due to their concern for the environment and climate change.

According to Atty. Vin Ching, a lawyer and also an advocate of green transport, the monetary incentive for the inclusion of e-motorcycles in the list of EVs that benefit from tax breaks will be significant.

"The inclusion of e-motorcycles will benefit those from the working class, those who really need transportation and it will also be necessary in order to give true meaning to the intent and purpose of the EVIDA law and the executive department,” said Ching.

The National Economic Development Agency was the agency that approved EO12 last November 2022 and will be the department that will submit findings and recommendations to the office of the president.

NEDA chief Arsenio Balisacan said last year that the main focus of EO12's evaluation will be on the topic of tax benefits for e-motorcycles beginning on 21 February 2024.

Data from the Electric Vehicle Association of the Philippines showed that there were 2,536 EV units sold in the local market from January to March, marking a 495.3-percent growth compared to the 426 EV units sold for the whole of 2022.