Press Release
March 4, 2023

Tariff suspension on electric vehicles necessary to develop industry-- Gatchalian

Senator Win Gatchalian, the principal author of the Electric Vehicle Industry Development Act (EVIDA), said the short-term suspension of tariffs on electric vehicles (EVs) is necessary to support the development of the industry.

The President signed in January Executive Order No. 12, which removed tariffs on electric vehicles (EVs) in a bid to lower EV prices and make them more affordable to local consumers. The tariff suspension, which will last for 5 years, is intended to increase the adoption of EV usage and reduce carbon emissions.

"The short-term protection will give time for local manufacturers to transition to e-vehicles," Gatchalian emphasized.

"We expect that tariff exemption of EVs will lead the country to usher in an EV ecosystem that is vibrant, responsive, and dynamic," he added.

The tariff suspension, however, will not cover 2-wheeled electric motorcycles in a bid to protect local manufacturers of tricycles. Specifically, only kick scooters, self-balancing cycles, bicycles, and pocket motorcycles with auxiliary motors not exceeding 250 watts and with a maximum speed of 25 kilometers per hour have zero percent import duties while electric motorcycles are still subject to a 30% tariff rate.

According to Gatchalian, he understands the reason behind the exemption from tariff suspension of 2-wheel motorcycles as this would protect local manufacturers of tricycles and enable the local manufacturing industry to develop.

"I am confident that the exemption on 2-wheel motorcycles will provide appropriate support for local manufacturers of tricycles," Gatchalian said, noting that tricycles continue to be a popular mode of transportation for many Filipinos across the country.

Enacted into law last year, the EVIDA law is aimed at setting up the country to become a regional hub for EV production and assembly, incentivizing manufacturers, suppliers as well as buyers of EVs. The law also provides for the establishment of the National Electric Vehicle Development Plan, which outlines the goals and strategies of the Philippines' EV industry development.


Pagsuspinde ng taripa sa electric vehicles nararapat para mapaunlad ang industriya -- Gatchalian

Sinabi ni Senador Win Gatchalian, ang punong may akda ng Electric Vehicle Industry Development Act (EVIDA), na ang panandaliang pagsuspinde ng taripa sa mga electric vehicle (EVs) ay kinakailangan upang suportahan ang pag-unlad ng industriya.

Nilagdaan ng Pangulo noong Enero ang Executive Order No. 12, na nag-aalis ng taripa sa mga de-kuryenteng sasakyan (EVs) sa layuning mapababa ang mga presyo ng EV para sa mga mamimili. Ang pagsuspinde ng taripa, na tatagal ng limang taon, ay naglalayong maparami ang mga gumagamit ng EV at bawasan ang carbon emissions.

"Ang panandaliang pagsuspinde ng taripa ay magbibigay ng sapat na oras para sa local manufacturers na lumipat sa e-vehicles," diin ni Gatchalian.

Gayunpaman, hindi saklaw ng suspensyon ng taripa ang mga 2-wheel electric motorcycle. Mainam ito, ayon sa senador, upang maprotektahan ang gumagawa sa bansa ng mga tricycle. Tanging ang mga kick scooter, self-balancing cycle, bisikleta, at pocket motorcycle na may auxiliary motors na hindi hihigit sa 250 watts at may maximum speed na 25 kilometro bawat oras ang may zero percent import duties, habang ang mga electric motorcycle ay mayroon pa ring 30% tariff rate.

"Natitiyak ko na ang exemption sa mga 2-wheel na motorsiklo ay magbibigay ng angkop na suporta para sa mga gumagawa ng mga tricycle," sabi ni Gatchalian. Ang tricycle ay nananatiling isang popular na paraan ng transportasyon para sa maraming pasahero sa bansa.

Naisabatas noong nakaraang taon ang EVIDA na may mandatong gawing isang regional hub ang bansa para sa produksyon ng EV, na nagbibigay-insentibo sa mga manufacturer, supplier at mga mamimili ng mga EV. Isinasaad din ng batas ang pagtatatag ng National Electric Vehicle Development Plan, na nagbabalangkas sa mga layunin at estratehiya ng pag-unlad ng industriya ng EV ng Pilipinas.

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