Advocacy group wants review of tax breaks for e-vehicles

An electric vehicle being charged. Stock photo

MANILA, Philippines — An advocacy group for environmental stewardship is urging the government to amend the tax incentives for electric vehicles (EVs) to make them inclusive of electric motorcycles.

The Philippine Business for Environmental Stewardship (PBEST) urged the government to amend the tax incentives for electric vehicles, saying it “lacks inclusivity.”

PBEST Secretary General Felix Jose Vitangcol said the tax breaks should not be limited to select e-vehicles, saying electric motorcycles are also necessary, and most common, to the needs of most ordinary commuters.

This was after the Palace released Executive Order No. 12 series of 2023, which modifies the tariff rates for EVs to help mainstream their use among Filipinos.

The EO 12 lowers the tariff rate for certain EV types ranging from five to 30 percent to zero percent import duty.

Under the EO, EVs such as kick scooters, pocket motorcycles, and self-balancing cycles are included in the tax breaks. On the other hand, two-wheeled electric motorcycles are still subject to a 30 percent import duty.

In a statement posted on their Facebook page, Vitangcol stated that there seems to be a problem in the EO since only a limited portion of the population can afford to buy four-wheeled vehicles.

“Only more affluent Filipinos – indeed a limited segment of the population – can afford to buy four-wheel vehicles, and hence enjoy these incentives,” Vitangcol said in their statement last February 16.

The organization reiterates that most motorists in the country use two- or three-wheeled vehicles, including public utility jeepneys.

The Land Transportation Office documented that almost 8 million units of motorcycles will be registered in their office in 2021.

“It is also they who are already perennially burdened by the soaring prices of basic goods and hampered by their limited income to provide for their families,” he added.

PBEST asserts that more Filipinos should be encouraged to shift to alternative energy regardless of their socio-economic status and the types of their vehicles.

“This is why the government must make these tax incentives more inclusive,” the secretary general addressed.

READ: Marcos Jr. OKs tariff cuts for e-vehicles, parts

Vitangcol also said that the government’s role is to spearhead the country’s shift to electric vehicles as it will lessen the nation’s dependence on fossil fuels.

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