Philippines lifts tariffs on electric vehicles

Illustrative image (Photo: VNA)

Hanoi (VNA) - A Philippine inter-agency panel chaired by President Ferdinand Marcos Jr has approved removing tariffs on electric vehicles (EVs) to spur demand amid high fuel costs, according to foreign media.

The President will issue an executive order to cut the most favoured nation tariff to 0% on EVs like passenger cars, buses, vans, trucks, motorcycles, and bicycles, and their parts for five years. The current import tax on EVs in the country is from 5% to 30%.

However, tariff rates on hybrid vehicles will not change.

According to Economic Planning Secretary Arsenio Balisacan, the executive order aims to expand market sources and encourage consumers to consider acquiring EVs, improve energy security by reducing dependence on imported fuel, and promote the development of the domestic EV industry ecosystem.

Consumers in the Philippines currently need 21,000 USD to 49,000 USD on an EV, versus the 19,000 USD to 26,000 USD for conventional vehicles.

Data from the Philippine government show that among the more than 5 million registered automotives in the Southeast Asian nation, only 9,000 are electric, mostly passenger vehicles./.