MANILA, May 16 (Reuters) - The Philippines has extended its no-tariff policy on electric vehicles and parts through 2028 in a bid to wean the country away from fossil fuels and boost its EV market, a government economic committee said on Thursday.
The committee chaired by President Ferdinand Marcos Jr. also widened the scope of preferential tax rates to include hybrid electric vehicles, e-motorcycles and e-bicycles.
Marcos first approved in January 2023 cutting the most favoured nation tariff on EVs such as cars, vans and buses to 0%. Import duties previously ranged from 5% to 30%.
The Philippine leader, whose term ends in 2028, has made renewable energy and combating climate change a centrepiece of his policy agenda, promoting cleaner alternatives to fossil fuels in a country that is one of the most vulnerable to extreme weather events.
The Philippines aims for a 75% reduction in greenhouse gas emissions by 2030 under its Paris Agreement commitments.
"By encouraging consumers to adopt EVs, we are promoting a cleaner, more resilient, and more environmentally friendly transportation alternative,” said Economic Planning Secretary Arsenio Balisacan.
The rates will be reviewed annually to ensure its impact on the EV market in the country.
The Philippines' automotive sector relies mostly on imported fuel. It also buys oil and coal abroad for its energy generation needs, making it vulnerable to price volatility.
Source: Reporting by Mikhail Flores. Editing by Gerry Doyle, https://www.reuters.com/business/autos-transportation/philippines-extends-zero-tariff-policy-electric-vehicles-parts-until-2028-2024-05-16/