MANILA – International think-tank and research organization ‘Stratbase ADR Institute’ called for tax breaks for electric motorcycles after the two-wheeled vehicles were left out under the amended tariff rates for Electric Vehicles.

This was after the organization learned that electric motorcycles were excluded from the list of EVs which received zero percent import duties under Executive Order No. 12 series of 2023, for the first five years, to help promote electric vehicles in the country.

The EO modified the tariff rates previously ranging from five to thirty percent for certain EVs by temporarily reducing it to zero percent to help the country adapt to e-vehicle usage and decrease carbon emissions.

Stratbase President Prof. Dindo Manhit said that tax breaks should be implemented for all types of EVs, especially as motorcycles make up the majority of motorists in the country.

The president also said that the EO should aim to be inclusive as ordinary workers and students use motorcycles to commute to work while four-wheeled vehicles are often only afforded by higher-income individuals.

The Land Transportation Office recorded in 2021 that almost 8 million units of motorcycles are registered in the agency.

“Millions of working Filipinos opt for two and three-wheel vehicles because of their income limitations. They are the most vulnerable to the increase in prices of fuel and other basic commodities. Making electric motorcycles more affordable means no more worries [about] spiking petroleum prices and pollution-free transportation for the masses,” Manhit said in a statement posted on the organization’s Facebook page.

“Stratbase thus urges President Marcos Jr. to amend EO12 to expand its coverage to two and three-wheel electric vehicles. Becoming a dominantly electric vehicle country is an exciting prospect that the government must pursue,” the president added.

New industry to explore

House Deputy Speaker and Trade Union Congress of the Philippines President, Representative Raymond Mendoza also said that the country can capitalize on the emerging industry of electric vehicles as another income-generating stream and help create more jobs.

The Electric Vehicles Association of the Philippines projected the EV market to grow at an annual rate of eight to 12 percent over the next ten years.

This equates to about P1.68 billion in revenue services and sales of 200,000 units by 2024.

According to Industry.gov.ph, a portal for the economic sector under the Department of Trade and Industry, there are 28 firms currently engaged in the manufacturing of electric vehicles in the country.

This provides jobs to around 14,840 in industries involving parts and components manufacturing and importation.