The Electric Vehicle Association of the Philippines (EVAP) has expressed its support for the inclusion of e-motorcycles in the list of e-vehicles eligible for tax incentives under Executive Order No. 12, which is scheduled for mandatory review. EVAP President, Edmund Araga, emphasizes the need for the Philippines to move away from being “car-centric” and take into consideration the majority of road users who are motorcycle riders.
Araga highlights the affordability of two and three-wheeled vehicles for most consumers and argues that the basis for granting tax incentives should not be limited to four-wheeled vehicles alone. To support his claim, Araga cites data from the Statista Research Department, revealing that the Philippines currently has 7.81 million registered motorcycles and tricycles.
Executive Order No. 12, series of 2023, aims to modify tariff rates for certain types of electric vehicles (EVs) and their parts and components for a period of five years. The goal is to promote and mainstream green transportation in the country. However, e-motorcycles were excluded from the list of EVs benefiting from the tax breaks, subjecting them to a 30 percent tariff rate.
Stakeholders within the EV industry have expressed their concern about the exclusion of e-motorcycles from the coverage of Executive Order No. 12, considering it an “injustice” to motorcycle riders. Araga believes that granting tax breaks to motorcycles could be a game-changer in addressing the country’s traffic issues. However, he emphasizes the importance of proper monitoring and documentation to prevent the misuse of e-motorcycles on the road.
“We need to strike a balance with these rules and regulations to ensure their effective implementation,” Araga asserts. He also advocates for the localization of e-motorcycle production, suggesting that the government should create a win-win situation for both producers and consumers of e-motorcycles in the country.
“We are actively working to attract investors to establish manufacturing plants capable of producing motorcycles locally,” Araga states. By encouraging local production, the Philippines can boost its economy and create job opportunities while promoting the use of environmentally-friendly transportation options.
In conclusion, the Electric Vehicle Association of the Philippines (EVAP) supports the inclusion of e-motorcycles in the list of e-vehicles eligible for tax incentives. EVAP President Edmund Araga emphasizes the importance of considering the majority of road users who are motorcycle riders and argues that tax breaks for motorcycles could significantly impact the country’s traffic situation. However, Araga also stresses the need for proper monitoring and documentation to prevent the misuse of e-motorcycles on the road. Additionally, he advocates for the localization of e-motorcycle production to stimulate the economy and provide more opportunities for both producers and consumers in the Philippines.
Source: The Manila Times
