Expansion of EO 12 Tariff Coverage To Create More Green Jobs --- Recto

Finance Secretary Ralph Recto envisions the expansion of the electric vehicle (EV) incentive program under Executive Order 12 to enhance the ease of doing business, promote sustainable investments, and generate more jobs in green technology.

This expansion includes tariff exemptions on e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, hybrid electric vehicles, and plug-in hybrid electric vehicle jeepneys or buses.

The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand R. Marcos Jr., approved the expansion on May 15.

This expansion includes tariff exemptions on e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, hybrid electric vehicles, and plug-in hybrid electric vehicle jeepneys or buses.

Based on the EO, tariffs on these items will be reduced to 0 percent until 2028. Recto emphasized that the exemptions also cover EV parts and components and completely knocked down EVs, which could incentivize assembly or manufacturing in the Philippines.

"This strategic move puts the Philippines at the forefront of green technology, attracting more sustainable investments, creating high-quality jobs, fostering innovation, and offering eco-friendly vehicle choices," Recto said.

He added that this initiative aligns with the goal of reducing greenhouse gas emissions by 75% by 2030.

The expansion will make EVs more accessible and affordable for consumers and attract more investors to the Philippines, covering manufacturing, research and development, and infrastructure development in the EV industry.

Additionally, the Electric Vehicle Industry Development Act, effective since April 2022, provides EV owners with exemptions from "number coding" road decongestion measures and priority registration and renewal with the Land Transportation Office (LTO).

EVs also receive special license plates and a 30-percent excise tax discount on motor vehicle user charges, with hybrid vehicles granted a 15 percent discount.

"All these reforms are a testament to the President's commitment to roll out a red carpet for investors and the Philippines' strong resolve to create a vibrant and sustainable EV ecosystem," Recto stressed.