Given the current fuel price crisis we’re experiencing right now, it seems it would be wise for our country to slowly integrate easier ownership of sustainable mobility offerings such as EVs. Well, it seems two Government agencies are starting to take notice.
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The National Economic Development Authority (NEDA) and the Department of Trade and Industry (DTI), are pushing to eliminate the current import duty fee (30%). This is different from the TRAIN Law (Tax Reform For Acceleration and Inclusion) which already mandates that EVs are exempted. NEDA and DTI are aiming to remove the MFN (Most Favored Nation) tariff ad valorem, which is the import duty.
The goal of the proposal, is to make EVs a more affordable option for those in market for a brand new car. This in turn will make motorists less reliant on oil, lastly EVs are kinder to the environment as well.
“One thing we are proposing is to adjust the tariff rate from 30% to zero to provide a boost to EV adoption. We need to promote EVs and the way to promote it is to encourage their use. How will you encourage the use of EVs if they are expensive? This is one of the immediate ways that we think can be done,” said DTI Secretary Ramon Lopez.
Secretary Lopez further added that, if the proposal is met favorably he hope dealers can bring in more EV models before 2022 ends.
