Philippines Goverment will extends zero tariff policy for electric vehicles until 2028

The Philippine government's Economic Council said the Philippines has extended its zero-tariff policy for electric vehicles and parts until 2028 to reduce its dependence on fossil fuels and promote the development of its electric vehicle market.

The commission, chaired by President Ferdinand Marcos Jr., also expanded the scope of preferential tax rates to hybrid vehicles, electric motorcycles, electric bicycles, etc.

Marcos has approved for the first time in January 2023 about the reduction of most-favored-nation tariffs on electric cars, trucks and buses to 0%. Previously, import duties on these vehicles ranged from 5% to 30%.

Marcos, whose will ending the work in 2028, has made renewable energy and combating climate change central to his policy agenda. The Philippines is relatively vulnerable to extreme weather events, so Marcos hopes to promote cleaner alternative energy sources in the country. In line with its commitments under the Paris Agreement, the Philippines aims to reduce greenhouse gas emissions by 75% by 2030.

Currently, the Philippines' automotive industry relies heavily on imported fuel. The country also purchases oil and coal from abroad to meet its power generation needs, leaving it vulnerable to price fluctuations.

“By encouraging consumers to adopt electric vehicles, we are promoting a cleaner, more resilient and greener mode of transportation,” said Economic Planning Secretary Arsenio Balisacan.

The zero-tariff rate for electric vehicles will be reviewed annually to ensure its impact on the country’s electric vehicle market.