E-motorcycle inclusion on EO12 tax break sought

The Tariff Commission has recommended to the National Economic and Development Authority (NEDA) the inclusion of e-motorcycles in the tax incentives expanding the scope of Executive Order 12 series of 2023.

The commission pushed the possible inclusion of e-motorcycles under EO12, the executive issuance that gives tax breaks to electric vehicles (EVs), after taking into consideration the numerous position papers submitted by stakeholders during its public hearing on 13 March 2024.

This comes after NEDA commissioned its attached agency to hold the public hearing to pool suggestions and findings by stakeholders, along with their arguments and data-backed positions as to why e-motorcycles should get tax breaks.

The commission submitted to NEDA on 12 April 2024 its report on EO12 review talks which will subsequently be followed by several deliberations before the executive issuance gets its final update.

Since EO12 took effect in February 2023, EV industry leaders have been campaigning for the inclusion of e-motorcycles under the executive issuance, questioning its intent and demanding its inclusion once the review takes place.

Under EO12, only e-motorcycles are still subject to a 30 percent import tax, while other types of EVs got reduced or removed from tariff rates.

According to the Statista Research Department, motorcyclists will account for approximately 7.81 million registered vehicles in the country in 2022, making them the most popular vehicle type among motorists.

Think tank Stratbase ADR Institute and advocacy network CitizenWatch Philippines have been actively advocating for tax breaks for e-motorcycles since 2023, citing their benefits to the country, environment and economy, once integrated into the country's traffic.

E-motorcycles’ zero emissions are one of their most emphasized traits, as the transportation sector alone is responsible for emitting 35.42 million tons of carbon dioxide in 2022, which contributes to climate change, data from Statista showed.

The Department of Energy also wants to increase the country's EV fleet by 50 percent or an additional 2.4 million units, in hopes of making the green transportation sector help cut down the country’s 35.42 million tons of carbon dioxide emissions in 2022, which contributes to climate change.

To recall, EO12 was enacted to complement the Electric Vehicle Industry Development Act (EVIDA) to create an industry for EVs in the country and help reduce carbon emissions, in compliance with the Philippines' commitment to the Paris Agreement. It modifies the tariff rates for EVs to help mainstream their use among Filipinos.