Mobility advocate wants inclusion of e-motorcycles in tax break under EO 12

An electric vehicle being charged. Stock photo

MANILA, Philippines — A group advocating clean and environment-friendly mobility urged the inclusion of electric motorcycles in the government’s tax breaks, like other types of e-vehicles, under the Executive Order No. 12 recently issued by Malacañang.

The Electric Kick Scooter of the Philippines (EKS PH) advocating safe and fair transportation alternative to the public said EO 12 doesn’t include e-motorcycles, which is unfair for users and owners of e-motorcycles in their daily commute.

READ: Philippines to cut tariffs on electric vehicles, parts

EKS PH co-founder Tim Vargas said if electric motorcycles were not given tax breaks like other types of electric vehicles, that would be unfair.

This came after Vargas was informed that two-wheeled electric motorcycles were left out under EO 12 series of 2023, which temporarily modifies the tariff rate for electric vehicles and components.

Only kick scooters, self-balancing cycles, e-bicycles, and pocket motorcycles with auxiliary motors not exceeding 250w and with a maximum speed of 25 kilometers per hour have zero percent import duties, while electric motorcycles are still subject to 30 percent tariff rate.

“It’s very sad that it’s not part of the EO 12 and we’re hoping that this would be amended,” he said.

Upon signing the EO, the tariff ranging from five to 30 percent will be temporarily modified to zero percent for the next five years to help the country adapt to e-vehicle usage and reduce carbon emissions.

Vargas said that the exclusion of electric motorcycles in the EO 12 should be clarified further and revisited by the executive committee.

“I will find it very unfair if this can’t be revised because we are in a democratic country so dapat halos lahat mapagbigyan naman,” Vargas added.

He also noted that two-wheeled motorcycles is the primary choice of transport for residents of Metro Manila which should be given priority for incentives.

The Land Transportation Office recorded in 2021 that almost 8 million units of motorcycles were registered to their office.

EV Industry emerging

Vargas believes that the large usage of two-wheeled motorcycles along with the e-vehicle industry can also help improve the country’s employment rate.

“I’m pretty sure that it’s gonna create a different market,” he said.

The push for using EVs from other stakeholders also stems from the Philippines as the third of the most vulnerable country to climate change and is set to lose six percent of its Gross Domestic Product annually by 2100.

The Electric Vehicles Association of the Philippines projected the EV market to grow at an annual rate of eight to 12 percent over the next ten years.

This equates to about P1.68 billion in revenue services and sales of 200,000 units by 2024.

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JPV