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Group backs moves to grant e-motorcycles tax break

By Manila Times - 7 months ago

THE Electric Vehicle Association of the Philippines (EVAP) supported moves to include e-motorcycles in the list of e-vehicles to be granted tax incentives under Executive Order No. 12 which is due for mandatory review.

EVAP President Edmund Araga said the Philippines should not be "car-centric" and should take into consideration the majority of road users who are motorcycle riders.

"We are very vocal that with the proliferation of EVs in the Philippine setting, we also need e-motorcycles," Araga said. "In fact, most of the consumers can afford to buy two wheels and three wheels. it is hard if the basis is only four wheels," he added.

Araga cited figures by the Statista Research Department that the Philippines has 7.81 million registered motorcycles and tricycles.

EO 12, series of 2023, modifies the tariff rates for certain types of EVs and their parts and components for five years, to help mainstream green transportation in the country.

However, e-motorcycles were excluded in the list of EVs benefiting from the tax break, and thus are still subject to 30 percent tariff rates.

Stakeholders of the EV industry aired their concern when e-motorcycles were left out from the coverage of EO 12, saying it was an "injustice" to motorcycle riders.

Araga said that giving tax breaks to motorcycles would be a game-changer in the country's traffic, but added that their entry should also be properly monitored and documented to avoid their improper use on the road.

"We have to strike a balance out of these rules and regulations in order for us to secure and make sure that the application is in place," he pointed out.

Araga also pushed for the localization of e-motorcycle production, saying that the government should look into a win-win situation for producers and consumers of e-motorcycles in the country.

"What we are pushing is bringing a manufacturing plant that is capable of building motorcycles here. We are working tirelessly to lure investors to come here and produce EVs, in particular, the two-wheels," he said.

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