Policy content

Policy objectives

The Philippine government’s Economic Commission announced on May 16 that the zero tariff policy for electric vehicles and their components has been extended until 2028, aiming to free the country from its dependence on fossil fuels and promote the development of its electric vehicle market.

Policy scope

The committee chaired by President Marcos Jr. will also expand the range of preferential tax rates to include hybrid cars, electric motorcycles, and electric bicycles.

Presidential Plan

Marcos first approved the most-favored-nation tariff reduction to 0% for electric cars, trucks, and buses in January 2023. Previously, the import tariffs for these vehicles ranged from 5% to 30%.

Marcos’ term will end in 2028, and he has made renewable energy and climate change mitigation the core of his policy agenda. The Philippines is particularly vulnerable to extreme weather events, so Marcos aims to promote cleaner alternative energy sources in the country. In line with its commitments under the Paris Agreement, the Philippines targets a 75% reduction in greenhouse gas emissions by 2030.

Energy Factor

Currently, the automobile industry in the Philippines heavily relies on imported fuel. The country also purchases petroleum and coal from abroad to meet its electricity demands, making it vulnerable to price fluctuations.

The Philippine Secretary of Economic Planning, Arsenio Balisacan, stated that by encouraging consumers to adopt electric vehicles, we are promoting a cleaner, more resilient, and environmentally friendly mode of transportation.