Energy officials in tandem with their trade counterparts are evaluating proposals extending the zero tariff on four-wheel electric vehicles at the moment but apply the privilege even on two- and three-wheeler EVs, the Department of Energy (DOE) said.
Also, the original five-year tariff-free status of EV imports is believed too short to support the clean and renewable energy aspirations of government and is being reevaluated as well. President Ferdinand Marcos Jr. signed an executive order only in January last year granting zero tariff on four-wheel EV imports to encourage the adoption of the technology.
Proponents, mostly the DOE, have appealed to the Tariff Commission to extend the zero tariff treatment on two-, three-, four as well as hybrid EVs to help the technology thrive in the intervening period.
Nissan, the Japanese pioneer in mass market electric vehicles, projects the Philippine EV sector growing by 5 to 10 percent in the next 10 years.
Energy undersecretary Felix William Fuentebella said the Energy Utilization Management Bureau is working with the Department of Trade and Industry is completing a cost-benefit study of the proposals.
“There is a technical working group presenting this to the committee and is now being raised to the Tariff Commission where the President (Ferdinand Marcos Jr.) presides,” Fuentebella told reporters.
He said the matter is scheduled for discussion at the Tariff Commission next month and hopefully come up with a policy pronouncement within the month, possibly through an executive order.
In a separate interview, Isao Sekiguchi, Nissan president for Asean, rates the Philippines as one of expanding EV markets in the region, noting that it has a young and still growing population helping make it a prime location.
He also noted that government policy is an important component in countries transiting from fossil fuels to renewable or electric energy sources to achieve a breakthrough. Hong Kong, Sekiguchi said, supports the transition by extending the sector some form of incentive.
“That’s what the Hong Kong market is doing. There’s incentive for people to buy and it’s being incentivized, especially for those that have old cars,” Sekiguchi said.
Non-fiscal incentives such as special road lanes and coding exemptions also help further advance EV adoption in the Philippines.
Sekiguchi also said pricing and the cost of fuel remain major considerations in convincing people to shift to EVs.
“We forecast the growth of EV in Asean differently from country to country. We see more in Thailand, Singapore and also in Vietnam, from 15 to 20 percent. In the Philippines, Indonesia and some other markets in Asean, we still see 5 to 10 percent,” Sekiguchi said.
