THE approved expanded electric vehicle (EV) incentive program is expected to attract more investors, improving the country's business environment, a Cabinet official said.
"This strategic move puts the Philippines at the forefront of green technology, attracting more sustainable investments," said Finance Secretary Ralph Recto.
"It will spur the creation of high-quality jobs, foster innovation, and offer Filipinos more eco-friendly vehicle choices," Recto added.
Earlier this month, the National Economic and Development Authority (NEDA) approved extending tariff exemptions to a wider range of EVs and related components until 2028.
This expansion covers e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), jeepneys, and buses, with tariffs reduced to zero percent.
The exemptions also apply to EV parts and components, as well as completely knocked down (CKD) EVs, aiming to encourage assembly or manufacturing in the Philippines and boost the manufacturing sector while creating jobs.
Recto said the Committee on Tariff and Related Matters (CTRM) will conduct annual reviews of the rates to ensure their relevance and fairness to affected sectors.
This decision builds upon Executive Order 12, which initially removed tariffs on EVs and their parts for five years but did not include certain types of vehicles like e-jeepneys, e-buses, e-tricycles, and e-quadricycles.
Recto said the expanded measure would make EVs more accessible and affordable to consumers, speeding up the country's shift towards eco-friendly transportation.
Moreover, these incentives are projected to draw more investors to set up operations in the Philippines, including manufacturing, research and development, and EV industry infrastructure.
This increase in investment is also expected to bolster government revenues and create environmentally friendly jobs, strengthening the Philippines' status as a top manufacturing center in Asia.
"The policy environment for investments in the country has never been more open and liberalized than it is now," said Recto.
"The Department of Finance will continue to act fast on measures that will further promote ease of doing business to attract more productivity-enhancing investments in the country," he added.
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