Summary
– Import tariffs for hybrid vehicles extended until 2028 to stimulate demand and create jobs in the green technology sector
– Expansion of Executive Order No. 12 includes hybrid and plug-in vehicles, e-motorcycles, and batteries
– The focus is on promoting cleaner and more environmentally friendly transportation options
– Opposition from Electric Vehicle Association of the Philippines due to concerns about hindering the development of charging infrastructure and favoring hybrids over pure electric vehicles
– The country aims to have at least 311,700 EVs and 7,300 charging stations by 2028, with the need for a smooth transition to an electrified transport sector
Article
The Marcos administration has recently announced that import tariffs on hybrid vehicles will not be enforced until 2028. This decision is expected to boost the demand for electric and hybrid vehicles, promote domestic manufacturing, create new jobs in the green technology sector, and encourage the adoption of cleaner transportation options. The National Economic and Development Authority (Neda) Board approved the expansion of Executive Order No. 12 to include hybrid and plug-in hybrid vehicles, as well as electric motorcycles, bicycles, and batteries used in hybrid electric vehicles.
The initial Executive Order, signed in January of the previous year, had already eliminated import duties on electric vehicles and their parts until 2028, making them more affordable and attractive to consumers seeking environmentally friendly transportation options. Neda Secretary Arsenio Balisacan emphasized that promoting the adoption of electric vehicles would lead to cleaner and more sustainable transportation. Energy Secretary Raphael Lotilla also expressed enthusiasm for the decision, citing its potential to simplify environmentally friendly choices for consumers and promote growth in the electric vehicle industry program in the country.
However, not everyone is in favor of including hybrid vehicles in the tariff exemption. The Electric Vehicle Association of the Philippines (Evap) strongly opposes the expansion, arguing that hybrids do not contribute to the development of charging infrastructure, a key objective of the Electric Vehicle Industry Development Act of 2022. Evap believes that the preference for hybrids over pure electric vehicles will hinder the growth of battery electric vehicles and slow down the development of charging infrastructure in the country.
Statistics show that a majority of electric vehicles sold in the country are hybrids, with only a small percentage being battery electric vehicles. Trade Secretary Alfredo Pascual expressed concerns that reducing tariffs on hybrids contradicts the government’s goal of increasing the adoption of electric vehicles on the road. The deployment of charging stations across the country may be affected if hybrids continue to be the preferred electric vehicle option, as they do not require charging like pure electric vehicles do.
While hybrids offer a smaller carbon footprint compared to traditional gasoline or diesel vehicles, they are not a zero-emission solution. They could serve as a transitional option towards full electric vehicles by familiarizing more consumers with the benefits of electric propulsion. It is crucial for the government to review the existing roadmap and legal framework to ensure that the country is moving in the right direction towards a cleaner and greener transportation network. Ultimately, the Philippines should strive to move beyond hybrids and work towards a future where electric vehicles dominate the market.
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