Party-list solon wants to amend EVIDA law to include 2-wheeled vehicles

/ 02:59 PM November 27, 2023
Party-list solon wants to amend EVIDA law to include 2-wheeled vehicles

FILE PHOTO: An electric vehicle being charged.

Puwersa ng Bayaning Atleta Rep. Margarita Nograles has filed House Bill 9574 seeking to amend certain provisions of the Electric Vehicle Industry Dev’t. Act, which currently excluded the two-wheeled electric vehicles from certain import tariff exemptions.

EVIDA is a law enacted in July last year to promote and accelerate the development, manufacturing, utilization, and commercialization of electric vehicles (EVs) in the country.


EVIDA recognizes the importance of EVs in reducing dependence on fossil fuels, mitigating climate change, and promoting sustainable transportation options.

It also aims to create an enabling environment for the growth of the EV industry, increase the adoption of EVs, and contribute to sustainable development and environmental conservation.


But despite the huge share of two-wheeled electric vehicles vis-à-vis four-wheeled electric vehicles in the market, Nograles explained that the current tariff structure imposes higher upfront costs on electric two-wheelers, making them less economically attractive to consumers compared to conventional gasoline-powered two-wheelers.

“This situation creates a significant barrier to the growth of the electric vehicle industry, impeding environmental sustainability efforts and hindering the transition to clean transportation,” Nograles said.

Her proposed amendment to EVIDA Act aims to achieve the following objectives:

– First, Temporary Decrease of the Most Favored Nation (“MFN”) Tariff Rates.

The amendment pursues to introduction of a temporary reduction in the MFN tariff rates for all electric vehicles. Lowering the tariff burden enhances the affordability and competitiveness of electric vehicles, more particularly two-wheelers, making them a more attractive option for consumers. The temporary nature of this reduction recognizes the need to provide immediate support to the industry while allowing for a reassessment of tariff rates in the future.

– Second, Call for a Zero Percent MFN Tariff Rate. In addition to the temporary reduction, the amendment proposes the demand for a zero percent MFN tariff rate on two-wheeled electric vehicles for the next five years.

“This striving measure aims to eradicate tariff-related barriers entirely, signaling a strong commitment to promoting the growth of the electric vehicle market. By demanding a zero percent MFN tariff rate, the amendment aligns with global efforts to incentivize the adoption of clean and sustainable transportation,” Nograles explained.


Nograles also said the proposed amendment aims to briefly reduce tariff rates, and demands a zero percent MFN tariff rate for two-wheeled electric vehicles.

It would also yield several significant benefits:

– First, this affects market stimulus and industry growth. Lower tariff rates and a zero percent MFN tariff rate incentivizes consumers to choose electric two-wheelers over conventional vehicles, leading to increased market demand.

This, in turn, stimulates investment in the electric vehicle industry, promotes the establishment of manufacturing facilities that will create employment opportunities, and drives technological advancements.

– Lastly, environmental sustainability. The accelerated adoption of two-wheeled electric vehicles contribute to a reduction in greenhouse gas emissions.

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