Recently, the National Economic and Development Authority (NEDA) approved the policy of providing duty free status to two-wheeled vehicles up to 2028.
This is not yet effective though as Malacañang still needs to amend the implementing rules of Executive Order (EO) No. 12 s.2023 to include the electric 2Ws in its coverage. The said EO temporarily reduces the tariff rates of electric vehicles (EVs) and its parts and other components.
While this executive fiat from last year and its implementing rules were laudable, they had, oddly, excluded 2W electric vehicles enjoying preferential tariffs — something that the new NEDA policy aims to address.
No doubt, electric vehicles mean cleaner air and more health benefits for the populace. EVs are environmentally friendly, substantially reducing your carbon footprint as they have zero tailpipe emissions.
Equally important consumer-wise, EVs will free you up from skyrocketing fuel costs. I understand from a friend of mine who lives in a community in the south of Metro Manila, and who works in the Makati CBD, that his cost of commuting with his EV is down to P2,000 a month, compared to his previous P10,000 in fuel expenses before. Also, he has no costs associated with oil changes and other maintenance for traditional internal combustion engines.
According to the December 2020 data of the Land Transportation Office, there were a total of 7.3 million motorcycles registered and an estimate of about 47,000 being unregistered. It is undisputed that there are more motorcycles than cars in this country and motorcycles are undeniably the vehicle of choice of the masses.
Import duty-free 2W electric bikes that will be competitive in pricing will entice our riders to shift to electric given its dramatic reduction in operating costs. Most of our riders are of limited means, and the fuel savings will surely go a long, long way to make ends meet.
Because it is pro-poor and pro-environment, Albay Rep. Joey Salceda and Party-List Rep. Margarita “Migs” Noriega have filed bills in Congress to include electric 2Ws in the coverage of EO 12.
Ergo, incentivizing two-wheeled electric vehicles means more EVs on the streets. And more EVs on the streets in lieu of fossil fueled ones means lower expenses, cleaner air, and better health.
(The author is the General Counsel of the Globe Group and is President of the Philippine Chamber of Telecommunication Operators. He plans to buy an EV car the next time.)
Atty. Castelo is the Group General Counsel of the Globe Group and the president of the Philippine Chamber of Telecommunications Operators.
