May 24, 2024

The Insider News

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NEDA board pushes EO modifying electric vehicles tariff rates

THE National Economic and Development Authority (NEDA) board has endorsed an executive order (EO) modifying the tariff rates of certain electric vehicles (EVs), including its parts and components to encourage consumers to acquire EVs and reduce dependence on imported fuel, Socio-economic Planning Secretary Arsenio Balisacan said on Thursday.

In a media briefing, Balisacan said the endorsement for an EO was made during NEDA’s first meeting under the administration of President Ferdinand R. Marcos Jr.

According to the NEDA chief, the EO modifying tariff rates will cover certain electric vehicles such as passenger cars, buses, minibus, vans, trucks, motorcycles, tricycles, scooters and bicycles, among others, including EV parts and components.

“In particular, the EO will temporarily reduce the most-favored nation (MFN) tariff rates to zero percent for five years and completely built-up or CBU units of second EVs, except for hybrid-type EVs,” Balisacan told reporters.

“It will also implement tariff modification on second parts and components of EVs from five percent to one percent for five years,” Balisacan pointed out.

Balisacan added the NEDA board also indicated that the tariff modifications shall be reviewed after one year of implementation with the view to assessing its impact and the development of the EV industry ecosystem.

The EO aims to expand market sources and encourage consumers to consider acquiring EVs, improve energy security by reducing dependence on imported fuel and promote the growth of the domestic EV industry ecosystem.