On November 24, a Philippine inter-agency council in Manila presided over by President Ferdinand Marcos Jr. approved lowering taxes on electric vehicles (EVs) to increase demand in the backdrop of high fuel prices.
On EVs including passenger cars, buses, vans, trucks, motorbikes, and bicycles, as well as their parts, Marcos will sign an executive order lowering the most favored nation tariff to 0% for next five years. The current range of import taxes is 5% to 30%.
Economic Planning Secretary Arsenio Balisacan at a press conference stated, "The executive order aims to expand market sources and encourage consumers to consider acquiring EVs, improve energy security by reducing dependence on imported fuel, and promote the growth of the domestic EV industry ecosystem."
Currently, an EV runs $21,000 to $49,000 in the Philippines, as opposed to between $19,000 and $26,000 for conventional vehicles. Hybrid car tariff rates will not change.
The car industry in the country of Southeast Asia mainly uses foreign fuel. Additionally, it imports coal and oil to meet its energy needs, making it susceptible to changes in price.
According to government statistics, approximately 9,000 of the more than five million registered automobiles in the nation are electric. According to data from the United States' International Trade Administration, only 1% of the market is occupied by personal EVs, which are exclusively owned by the very wealthy.
(Source: REUTERS)