Temporary 0% import taxes on electric vehicles ordered by PBBM

Electric vehicles and electric motorcycles were being sold in the country for quite some time now. There are actually two main reasons why a lot of Filipinos have not swapped their fossil fuel-burning ride for a zero emissions ride: range and its hefty price tag.

Now, with a recent Executive Order (EO), the price tag issue might be resolved.

Just recently, President Ferdinand Marcos, Jr., signed EO 12 to temporarily amend certain provisions of the Customs Modernization Act. Under EO 12, electric vehicles, as well as qualified electric motorcycles, will have 0% import duties (from 30%) for the next 5 years. This also applies to the importation of charging, distribution parts, and other related production equipment for EVs.

PBBM signs order for temporary 0% import duty on electric vehicles image

This should encourage manufacturers to import EVs that are available elsewhere in the world and set up related production facilities here in the country.

The rationale of the government is simple: to give the industry time to set up local production of EVs (hence the provisions of EVIDA), lower the cost of charging equipment (as mandated in the EO) as well as make EVs more attractive to customers so that they can actually -and realistically- consider an EV over an internal combustion engine (ICE) vehicle.

Should this EO significantly lower the showroom prices of EVs and particularly electric motorcycles, would you be willing to swap your trusty scooter or underbone for a rechargeable one?