- The Philippines has extended its no-tariff policy on electric vehicles and parts through 2028.
- The Philippines aims for 75 per cent in greenhouse gas emissions by 2030.
The Philippines has extended its no-tariff policy on electric vehicles and parts through 2028 to wean the country away from fossil fuels and boost its EV market, a government economic committee said.
The committee chaired by President Ferdinand Marcos Jr. also widened the scope of preferential tax rates to include hybrid electric vehicles, e-motorcycles and e-bicycles.
Marcos first approved in January 2023 cutting the most favoured nation tariff on EVs such as cars, vans and buses to 0 per cent. Import duties previously ranged from 5 per cent to 30 per cent.
However, the Philippine leader, whose term ends in 2028, has made renewable energy and combating climate change a centrepiece of his policy agenda, promoting cleaner alternatives to fossil fuels in a country that is one of the most vulnerable to extreme weather events.
Economic Planning Secretary Arsenio Balisacan said, “By encouraging consumers to adopt EVs, we are promoting a cleaner, more resilient, and more environmentally friendly transportation alternative.”
The rates will be reviewed annually to ensure their impact on the EV market in the country.
Furthermore, the Philippines’ automotive sector relies mostly on imported fuel. It also buys oil and coal abroad for its energy generation needs, making it vulnerable to price volatility.
Under its Paris Agreement commitments, the Philippines aims for 75 per cent in greenhouse gas emissions by 2030.