The government is weighing a longer extension of zero tariffs on electric vehicles but wants to recalibrate incentives so stronger EV demand eventually translates into local assembly, manufacturing investment, and a wider charging network.
Trade Undersecretary Ceferino Rodolfo said the government is studying the Electric Vehicle Association of the Philippines’ proposal to extend zero tariffs until 2040. The current policy runs through 2028, giving policymakers time to assess whether the tariff cut has delivered its intended market and investment gains.
“I’m still studying,” Rodolfo said, adding that the policy would be reviewed against its objectives as the 2028 deadline approaches.
Rodolfo said zero tariffs remain necessary to build a sufficiently large domestic market, improve economies of scale and support the rollout of EV infrastructure. But he said tariffs should eventually be reduced in a way that complements the Electric Vehicle Incentive Strategy, rather than leaving imports permanently dependent on broad tariff protection.
Asked whether tariffs could be gradually restored instead of returning immediately to previous levels, Rodolfo said, “That’s what I want. Scale it down.”
The government is also considering a more targeted incentive structure covering tariffs, excise taxes and non-fiscal measures. Support could be differentiated by vehicle category and segment, including EVs and hybrids, depending on their contribution to demand, infrastructure development and local production.
The policy challenge is to avoid a situation where cheaper imported EVs expand sales but do little to build domestic manufacturing capacity. At the same time, withdrawing incentives too quickly could weaken demand before local producers achieve the scale needed to compete.
Economic Development Secretary Arsenio Balisacan said the tariff measure should be viewed as part of the wider transport and energy ecosystem.
“The zero tariff is supposed to be temporary, just to let the industry adapt, speed up the adoption of EVs,” Balisacan said.
Meanwhile, Ma. Corazon Dichosa, executive director of the Board of Investments, said the EVIS implementing rules are targeted for release this month. Applications could open as early as October, allowing investors to begin facility construction and equipment imports ahead of trial production in 2027.
The next phase of policy will therefore test whether EV incentives can shift the Philippines from a growing import market into a viable regional production base.
