House Deputy Speaker and labor leader Raymond Mendoza wants the inclusion of electric motorcycles in the recently issued Executive Order No. 12. INQUIRER.net file photo / Daphne Galvez
MANILA, Philippines — House Deputy Speaker and labor leader Raymond Mendoza has pitched for the inclusion of electric motorcycles in the recently issued Executive Order No. 12, which imposes a zero percent tariff on electric vehicles.
Mendoza, also president of the Trade Union Congress of the Philippines, made the pitch for tax cuts as he hailed President Ferdinand Marcos, Jr. for issuing EO 12, which seeks to enhance the effectiveness of gov’t laws to decarbonize and reduce greenhouse gas emissions in the country.
The TUCP head said the move will bolster the electric vehicle industry “because the newly signed EO12, aside from its clean-air intent, its tax incentives will make investing easier and help businesses to flourish which will translate to more employment opportunities for Filipinos.”
The EO 12 temporarily modifies the tariff rate for the importation of electric vehicles.
READ: Marcos Jr. OKs temporary tariff cuts on imported e-vehicles, spare parts
Prior to its signing, electrically propelled vehicles are subject to import duties ranging from five to thirty percent. Under EO 12, these import duties have been cut to zero percent, effectively halting it for the next five years.
However, Deputy Speaker Mendoza pointed out that EO 12 may have overlooked the two-wheeled electric motorcycles in the grant for tax breaks.
“It appears that under the Presidential issuance, not all types of electric vehicles are granted a zero percent tax rate. Only kick scooters, self-balancing cycles, pocket motorcycles, as well as bicycles with an auxiliary electric motor not exceeding 250w and with a maximum speed not exceeding 25 [kph] are included in the tariff cut,” he quipped.
He added: “How about the 2-wheeled electric motorcycles? or those with an auxiliary electric motor exceeding 250w and with a maximum speed exceeding 25km/h? There is no substantial distinction between the articles currently imposed with zero percent tariff and the electric motorcycles which are still subject to 30% import duty. I hope this matter will be revisited.”
Since the start of the Marcos administration, TUCP has been pushing for its Sustainable Industrial Policy program to be included in the national employment creation strategy.
Under this program, an industry promotion strategy shall be formulated that will anchor on identifying the priority sectors and matching them with available skills for each region, based on their respective comparative advantage.
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