The official of the Philippine economic planning department said on the 24th that an interdepartmental working group will draft an executive order to implement the “zero tariff” policy on imported pure electric vehicles and parts in the next five years, and submit it to the president for approval. In the context of stimulating domestic electric vehicle consumption growth.
Arsenio Balisakan, director of the Philippine National Economic and Development Bureau, said at a press conference that President Ferdinand Romulus Marcos, who is the head of the working group, will issue an executive order to bring all Tariffs on imported electric vehicles and parts will be reduced to zero in the next five years, involving cars, buses, trucks, motorcycles, electric bicycles, etc. The current tariff rate ranges from 5% to 30% tariffs on hybrid.
On August 23, 2021, people wearing masks take a bus in Quezon City, Philippines. Published by Xinhua News Agency (photo by Umali)
Balisakan said: “This executive order aims to encourage consumers to consider purchasing electric vehicles, improve energy security by reducing dependence on imported fuels, and promote the growth of the electric vehicle industry ecosystem in the country.”
According to Reuters, in the Philippine market, consumers need to spend 21,000 to 49,000 US dollars to buy an electric vehicle, while the price of ordinary fuel vehicles is generally between 19,000 and 26,000 US dollars.
Of the more than 5 million registered cars in the Philippines, only about 9,000 are electric, mostly passenger vehicles, government data show. According to data from the US International Trade Administration, only 1% of the electric vehicles driving in the Philippines are private cars, and most of them belong to the richest class.
The Philippine auto market is highly dependent on imported fuel. The S.E.Asian country’s energy production industry also relies on imports of oil and coal from abroad, making it vulnerable to fluctuations in international energy prices.
Post time: Nov-26-2022