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DTI proposes tariff elimination to drive electric vehicle adoption

The Department of Trade and Industry (DTI) is taking proactive steps to drive the widespread adoption of electric vehicles (EVs) and advance sustainable transportation in the country.

In pursuit of this goal, the DTI has put forward a proposal to temporarily eliminate tariffs on EVs for a period of five years. By reducing purchase prices, the aim is to incentivize consumers and accelerate the uptake of these environmentally-friendly vehicles.

Recognizing the potential of EVs to reduce the country’s reliance on fossil fuels and promote greener transportation options, the DTI’s initiative seeks to make EVs more accessible to the general public. “This strategic move is expected to spark a surge in EV demand, attract investments in EV charging infrastructure, and drive the growth of the local EV industry,” explained Secretary Pascual.

To initiate the process, the DTI has requested the Tariff Commission (TC) to conduct an investigation on EVs as mandated by Section 1608 of the Customs Modernization and Tariff Act (CMTA).

Following a public hearing held on May 12, 2022, the TC has determined that tariffs on e-jeepneys and e-tricycles will be retained at 20% and 30% respectively. This decision aims to provide support to local producers and ensure a smooth transition within the industry.

On November 24, 2022, the National Economic Development Authority (NEDA) Board approved an Executive Order (EO) that will implement the proposed tariff modification for specific EVs and their parts and components. EO No. 12, issued on January 13, 2022, provides the framework for the implementation of the tariff modification.

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