THE Department of Trade and Industry (DTI) is open to studying an extension of the tariff exemption for imported electric vehicles (EVs) beyond 2028, Trade Undersecretary Ceferino Rodolfo said.
The Electric Vehicle Association of the Philippines (EVAP) had asked the government to extend the exemption until 2040, when the government wants EVs to account for half of all vehicles in the country.
Under Executive Order 12, issued in 2023, most-favored-nation tariff rates on covered EVs were reduced to zero for five years. Without an extension, tariffs could rise to as much as 30 percent after 2028.
Rodolfo said the government would assess whether the zero-tariff policy had achieved its objectives as the expiration date approaches. The review could also examine which vehicle categories should remain covered.
While the country still needs imported EVs, Rodolfo said the tariff exemption was intended to develop the domestic market until it becomes large enough to support local EV assembly. It was also designed to encourage investment in charging stations and other infrastructure.
Any extension must support the government’s broader strategy of developing local EV manufacturing, Rodolfo pointed out. This requires coordination among tariff, trade and tax policies, including excise taxes and non-fiscal incentives.
Stakeholders may submit position papers on the proposed extension, he added.
Meanwhile, Board of Investments (BOI) Industry Development Services Executive Director Ma. Corazon Dichosa said the agency aims to release the implementing rules and regulations for the Electric Vehicle Incentive Strategy (EVIS) program this month.
The draft rules are being reviewed by the Inter-Agency Committee on Electric Vehicle Industry Development, composed of the BOI and the departments of Finance, Energy, Transportation, and Budget and Management.
Once approved, the rules will take effect immediately, allowing the BOI to open applications for the program as early as October.
Dichosa said this would enable participants to start constructing facilities and importing equipment, with trial runs and production targeted for 2027. Commercial production is expected to begin before President Ferdinand Marcos Jr. ends his term in 2028.
The BOI has received inquiries from interested companies. If applications exceed available slots, the four participants offering the greatest economic contribution will be selected.
Dichosa said the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which supports domestic internal-combustion-engine vehicle manufacturing, is also being finalized.
The BOI wants to launch both programs within the year.