The Tariff Commission (TC) has recommended to the National Economic and Development Authority (NEDA) the inclusion of e-motorcycles in its list of electric vehicles (EVs) eligible for import tax breaks.

The commission said it submitted a report of its review of Executive Order (EO) 12 to the NEDA on April 12, suggesting the reduced rates. The commission is an attached agency of NEDA.

NEDA commissioned TC to hold the public hearing to pool suggestions and findings by stakeholders, along with their arguments and data-backed positions as to why e-motorcycles should get tax breaks.

The TC ended its public hearings on the mandatory review of the executive order last month where EV stakeholders pushed for the inclusion of e-motorcycles in tax incentives.

The commission's report will be subject to several deliberations before its final update.

Since EO 12 took effect in February 2023, EV industry leaders have been campaigning for the inclusion of e-motorcycles under the executive issuance, questioning its intent and demanding its inclusion once the review takes place.

Under EO 12, only e-motorcycles are subject to a 30 percent import tax, while other types of EVs got reduced or zero tariff rates.

The Statista Research Department said motorcyclists accounted for 7.81 million registered vehicles in the country in 2022, making them the most popular vehicle type among motorists.

Think tank Stratbase ADR Institute and advocacy network CitizenWatch Philippines have been actively advocating for tax breaks for e-motorcycles since 2023, noting their benefits to the environment and economy once integrated into the country's traffic.

E-motorcycles' zero emissions are one of their most emphasized traits, as the transportation sector alone is responsible for emitting 35.42 million tons of carbon dioxide in 2022, which contributes to climate change, data from Statista showed.

The Department of Energy also wants to increase the country's EV fleet by 50 percent, or an additional 2.4 million units to make the shift to "green transportation" and help cut down the country's carbon dioxide emissions which contribute to climate change.

EO 12 was enacted to complement the Electric Vehicle Industry Development Act to create an industry for EVs in the country and help reduce carbon emissions, in compliance with the Philippines' commitment to the Paris Agreement. It modifies the tariff rates for EVs to help mainstream their use among Filipinos.