Philippines Reviews Proposal to Extend Zero-Duty EV Imports Beyond 2028

The government is reviewing an industry proposal to extend zero import duties on electric vehicles (EVs) and their components beyond 2028, the Department of Trade and Industry said. "We’ll evaluate, as we move closer to 2028, if it was able to achieve the objective to build sufficient demand and put up the infrastructure (for EVs,)" Trade Undersecretary Ceferino S. Rodolfo told reporters on the sidelines of the Luzon Economic Corridor Investment Forum last week. The Electric Vehicle Association of the Philippines recently asked the government to extend zero import duties for EVs and their components until 2040 as it bids to accelerate the domestic market’s shift to EVs. Executive Order (EO) No. 12, issued in 2023, had slashed import duties of certain EVs and their parts and components to zero until 2028. The tariff perks were expanded in 2024 to cover e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, quadricycles, hybrid EV (HEV) and plug-in hybrid EV (PHEV) jeepneys or buses, battery EV, HEV, and PHEV cars and trucks, and completely knocked down EVs of all types. He said proposals to extend zero import duties on EVs and its components will be weighed “alongside the objective of the EVIS (Electric Vehicle Incentive Strategy), which is to encourage the assembly of EVs in the Philippines.” EO 121, signed in July, established the EVIS, which seeks to allocate P60 billion in fiscal support to encourage EV manufacturers to locate their facilities here. The framework for the EVIS is set to be released this month, Board of Investments Executive Director for Industry Development Services Ma. Corazon H. Dichosa told reporters separately. “We want everything to be rushed, so that before the year ends, all the participants can enter,” Ms. Dichosa said. “Our intention is for EVIS participants to start the construction of the facilities, to be able to import equipment, so that if they can start their trial production, it can be done next year,” she added. Mitsubishi Motors Philippines Corp. earlier signified its interest to join the EVIS with a P7-billion investment to domestically produce HEVs. — Beatriz Marie D. Cruz