NEDA Board proposes tariff modification for electric vehicles 

The National Economic and Development Authority (NEDA) Board on Thursday proposed to President Ferdinand "Bongbong" Marcos Jr. an executive order that would modify the tariff rates of certain electric vehicles.

The board made the endorsement during a meeting with Marcos, who is also the chairperson of the body that includes several Cabinet officials as members.

"In its first meeting, under the administration of President Ferdinand R. Marcos Jr., the NEDA Board [endorsed] an EO modifying tariff rates on certain electric vehicles, such as passenger cars, buses, mini buses, vans, trucks, motorcycles, tricycles, scooters, and bicycles, among others," NEDA Secretary Arsenio Balisacan said at a press briefing.

"In particular, the EO will temporarily reduce the most favored nation or MFN tariff rates to 0% for five years and completely built up (CBU) units of certain EVs except for hybrid types of EVs," he added. 

Previous tariff rates ranged from 5 to 7%, according to Balisacan.

The EO will also enforce a tariff modification on certain parts and components of electric vehicles from 5% to 1% for five years, said Balisacan. He added that the tariff modification would be reviewed after a year of implementation. 

However, Balisacan did not say when Marcos would sign the EO.

According to Balisacan, the EO aims to expand market sources and encourage consumers to use electric vehicles.

It also aims to reduce reliance on imported fuel and promote the growth of the domestic EV industry ecosystem, he said.

"We want to encourage the use of e-vehicles because that will address pollution issues and of course our adaptation to climate change. We believe that's the future," Balisacan said.

"More importantly we want to be part of the value chain globally in this drive to get to these new industries, new growth drivers."  — VBL, GMA Integrated News