EVAP pushes 'game-changing' e-motorcycle tax break

Electric Vehicle Association of the Philippines president Edmund Araga expressed his support for the inclusion of e-motorcycles in the grant of tax incentives under Executive Order 12 that is already due for mandatory review since 21 February.

Araga said that the Philippines should not be 'car-centric' and should take into consideration the majority of road users in the country, which are motorcycle riders.

According to the Statista Research Department, the Philippines has a total of 7.81 million registered motorcycles and tricycles, which holds the majority of motorists plying the country's roads.

"We are very vocal that with the proliferation of EVs in the Philippine setting, kailangan na kailangan din 'yang mga e-motorcycles na 'yan. In fact, most of the consumers can afford to buy two wheels and three wheels, and not on the four wheels... mahirap kung ang basis natin ay nasa four wheels lang," Araga said in an interview when asked for his comment on the possible inclusion of e-motorcycles in the list of EVs benefiting from tax breaks under Executive Order 12 series of 2023.

EO12, series of 2023, modifies the tariff rates for certain types of EVs and their parts and components for five years, to help mainstream green transportation in the country.

However, e-motorcycles are currently excluded in the list of EVs benefiting from the tax break, and thus are still subject to 30% tariff rates. The executive issuance is now up for review, a year since it took effect on 20 February 2023.

According to Araga, giving tax breaks to motorcycles would be a game-changer in the country's traffic, but noted that their entry should also be properly monitored and documented to avoid their improper use on the road.

"This would really be a game-changer kung talagang naisama ito [e-motorcycles on EO12]... We have to strike a balance out of these rules and regulations in order for us to secure and make sure that the application is in place," the president said.

Araga is also advocating for the localization of e-motorcycle production, noting that the government should look into a win-win situation for producers and consumers of e-motorcycles in the country.

"What we are pushing is bringing a manufacturing plant that is capable na mag-build dito. We are working tirelessly para ma-lure namin ang investors to come here and produce EVs, in particular, the two-wheels," he added.

Different stakeholders of the EV industry mounted their concerns when e-motorcycles were left out during EO12's initial passing, stating the 'injustice' to motorcycle riders.

EO12's review will be centered around discussions about giving tax breaks to e-motorcycles starting February 21, 2024, according to National Economic Development Agency chief Arsenio Balisacan.