Environmental business group, Philippine Business for Environmental Stewardship (PBEST), called for the current tax incentive scheme for electric vehicles (EVs) to be amended because it “lacks inclusivity,” after Malacañang released Executive Order No. 12 series of 2023 that modifies the tariff rates of EVs to help mainstream its use among Filipinos.
EO12 lowered the tariff rate for certain types of EVs ranging to 0 percent import duty, from 5 percent to 30 percent.
Under the EO, EVs such as kick scooters, pocket motorcycles, and self-balancing cycles are included in the tax breaks. Two-wheeled electric motorcycles, on the other hand, are still subject to 30 percent import duty.
In a statement posted in their Facebook page, PBEST Secretary General Felix Jose Vitangcol stated that there seems to be a problem with the EO since only a limited portion of the population can afford to buy four-wheeled vehicles. “Only more affluent Filipinos – indeed a limited segment of the population – can afford to buy four-wheeled vehicles, and hence enjoy these incentives,” he said.
PBEST asserted that more Filipinos should be encouraged to shift to alternative energy regardless of their socio-economic status and the types of their vehicles. “That is why government must make these tax incentives more inclusive,” Vitangcol said.
He added that it is government’s role to spearhead the country’s shift to electric vehicles as it will lessen the nation’s dependence on fossil fuels.
While EO12 aims to help Filipinos to adapt to the usage of EVs while decarbonizing and reducing the carbon emissions caused by vehicles that use fossil fuels, the critique of PBEST that it is not inclusive enough may need to be given attention, as government needs to do more to encourage more Filipinos to shift to EVs as soon as possible.
The Philippines is among the most vulnerable nations to the effects of climate change, and shifting to EVs is one such solution that needs to be made available to more Filipinos. Government needs to put more effort into making that option as inclusive and accessible as possible.*
