A proposed law seeking to impose a zero tariff on imported electric vehicles (EVs) to promote eco-friendly transportation by reducing dependence on fossil fuels moved an inch closer to its enactment after it hurdled the second reading in the House of Representatives earlier this week.

House Bill 10960 aims to amend the two-year-old Electric Vehicle Industry Development Act (EVIDA) by imposing a zero-percent tariff rate on imported EVs for five years, making it more accessible and affordable to Filipino consumers.

The importation of completely built units of charging stations shall likewise be subject to duty exemptions for eight years.

This bill will cover "two-wheeled, three-wheeled, or four-wheeled vehicles, or such other vehicles with at least one electric drive for vehicle propulsion.”

Currently, imported EVs are tariff-free until 2028 in accordance with Executive Order 12. EV parts and components are also subject to lower tariffs from 3 percent to 1 percent for a five-year period.

The tariff cut was further expanded in May, covering hybrid and plug-in hybrid jeepneys, buses, cars and trucks.

Proponents asserted that imposing a zero-tariff on EVs would be a crucial step towards a sustainable future by transitioning to a greener economy through reduced carbon emissions, slowing down climate change with a fuel-free environment.

Further, it would boost the EV market, generating much-needed jobs for Filipinos — in the future.

Rep. Margarita Nograles, one of the proponents, forecasted that the Philippines could eventually manufacture EVs in three years under the Board of Investment.

Nograles said e-tric and e-jeep are locally manufactured but e-cars are 100 percent imported, citing data from the Electric Vehicle Association of the Philippines (EVAP).

EVs are generally considered more sustainable as renewable energy accounts for some 26.4 percent of the country’s power, while some 99.77 percent of cars still use fossil.

Economist-lawmaker Joey Salceda previously said that the country’s net petroleum import has ballooned from $11.57 billion in 2021 to $19.02 billion in 2022, suggesting that an equivalent of two-thirds of the country’s BPO sector export revenues is utilized to account for petroleum needs.

“This is unsustainable, especially given that petroleum is a highly volatile and geopolitically sensitive commodity,” Salceda, one of the proponents of the measure, said.

As of 2024, there are at least 17,519 registered EVs, including buses and motorcycles, according to the Land Transportation Office.

The EVAP, meanwhile, estimates the figure could skyrocket to 6.6 million by 2030.

Nograles said there are at least 705 available EV charging points nationwide. The government is aiming to build 66,5000 across the country by 2028, according to EVAP.