The Philippines has decided to extend its zero tariff policy on electric vehicles and their parts until 2028. This move is in line with the country’s commitment to reduce greenhouse gas emissions by 75% by 2030 as part of its Paris Agreement obligations.

Aside from regular electric vehicles (EV), President Ferdinand Marcos Jr. also extended the scope of the 0% tax rates to include e-motorcycles, e-bicycles, and even hybrid EVs.

Before getting preferential tax treatment, import duties used to range from 5% to 30%. It also previously covered vans, cars, and buses.

President Marcos Jr. has prioritized renewable energy and addressing climate change in his policy agenda. This is to promote fossil fuel alternatives, especially in a country that’s vulnerable in extreme weather conditions.

Since the Philippines buy oil and coal in the international market, the country is vulnerable to the commodities’ price volatility.

The tax rates will be reviewed every year in order to ensure it’s positive impact on the electric vehicle market in the Philippines.

Source: Reuters

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