Zero-tariff bill for imported built-up EVs filed in House

EREN GOLDMAN-UNSPLASH

A BILL seeking to impose zero tariffs on imports of completely-built electronic vehicles (EVs) has been filed in the House of Representatives, with the measure proposing to run until 2029.

The measure proposes to amend Republic Act No. 11697 or the Electric Vehicle Industry Development Act (EVIDA).

Under the current law, imports of completely-built EVs are eligible for incentives under the Tax Reform for Acceleration Inclusion (TRAIN) law.

House Bill No. 9573 also seeks to include specify both two-, three-, and four-wheeled vehicles under the definition of EVs.

“Limited interpretations of the EVIDA have effectively denied two-wheeled electric vehicles access to fiscal incentives granted to electric vehicles,” Albay Representative Jose Ma. Clemente S. Salceda, who wrote the measure, said in its explanatory note.

He noted that 60% of EVs are two-wheeled, which meant that majority of EVs do not benefit from tax incentives.

Electric motorcycles are also considered more affordable and will have less of an impact on congestion, according to Mr. Salceda. 

He said the measure would help the Philippines comply with the Paris Agreement, which seeks to to limit global warming to 1.5°C by cutting greenhouse gas emissions by 43% by 2030.

Mr. Salceda added that some 99.77% of cars are still powered by fossil fuels.

Legislators have filed a separate measure seeking to regulate the use of EVs to ensure road safety and traffic management.

The Department of Energy said in August that it expects EV registrations to rise 30% each year. — Beatriz Marie D. Cruz