©Health & Fitness Journal. FILE PHOTO: Philippine President Ferdinand Marcos Jr. attends a meeting with representatives of the ASEAN Inter-Parliamentary Assembly (AIPA) during the ASEAN Summit in Phnom Penh, Cambodia November 10, 2022. REUTERS/Cindy Liu/File Photo
MANILA (Health & Fitness Journal) – A Philippine interagency panel chaired by President Ferdinand Marcos Jr on Thursday approved lifting tariffs on electric vehicles (EVs) in a bid to boost demand amid high fuel costs.
Marcos will issue an executive order that will reduce the most favored national tariff for electric vehicles such as passenger cars, buses, vans, trucks, motorcycles and bicycles and their parts to 0% for five years. Current import duties range from 5% to 30%.
“The executive order aims to expand market sources and encourage consumers to consider purchasing electric vehicles, improve energy security by reducing dependence on imported fuel, and promote the growth of the domestic electric vehicle industry ecosystem ‘ Economic Planning Minister Arsenio Balisacan said at a news conference.
Consumers in the Philippines currently shell out $21,000-$49,000 for an electric vehicle, versus $19,000-$26,000 for conventional vehicles.
The tariff rates for hybrid vehicles will not change.
Of the more than five million automobiles registered in the country, only 9,000 are electric vehicles, mostly passenger vehicles, government data shows. Personal electric vehicles make up just 1% of the market and are largely owned by extremely wealthy individuals, data from the United States’ International Trade Administration shows.
The Southeast Asian country’s automotive sector relies mainly on imported fuel. It also buys oil and coal abroad for its power generation needs, making it vulnerable to price fluctuations.