EO12 review in limbo: Apprehension persists among EV industry stakeholders
Anxiety grips the electric vehicle (EV) industry over the alleged failure of the National Economic Development Authority (NEDA) to commence with what Executive Order No. 12 has required as mandatory review of its provisions one year after its implementation on February 20, 2023.
This developed despite the announcement by NEDA chief Arsenio Balisacan that the Tariff Commission (TC) would be asked to conduct public hearings to carefully consider the views of all stakeholders.
The agency said that public hearings would be important to consider views and comments from stakeholders while taking into account current market conditions.
However, EV industry players reportedly remain clueless as to the conduct of public discussions due to the failure of the TC to release to the intended participants the necessary details of the public hearings.
Electric Vehicle Association of the Philippines (EVAP) President Edmund Araga stated that NEDA has not yet contacted the organization to solicit feedback or extend an invitation to participate in a public hearing. They were initially invited in 2022 when EO12 was still being developed.
“Unfortunately, we were not invited to be part of the review,” Araga said in a text message.
Micromobility advocate and Electric Kick Scooter Philippines co-founder Tim Vargas also said that NEDA has yet to reach out to his group. His camp has also filed a position paper to the agency regarding their proposed amendments for EO12 but has yet to receive a formal reply.
EO12 was enacted to complement the Electric Vehicle Industry Development Act (EVIDA) 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 its use among Filipinos.
Under the EO, EVs such as kick scooters, pocket motorcycles, and self-balancing cycles are included in the tax breaks. Two-wheeled electric vehicles, on the other hand, are still subject to 30% import duty even while motorcycles are the nation’s most preferred means of transportation, as evidenced by the Land Transportation Office’s record of nearly 8 million motorcycles inside its organization, which drew the ire of different stakeholders.
Albay 2nd District Representative Joey Salceda also filed House Bill No. 9573 to apply modifications to EO12, as the lawmaker noted that 60% of the nation’s electric vehicles are classified as two-wheeled, which makes it unfair for them to be excluded from tax breaks.
The transportation sector, alone, in the country is responsible for emitting 31.54 million tons of carbon dioxide which contributes to climate change.
The Department of Trade and Industry plans to phase out internal engine combustion cars as part of a comprehensive plan to transition the nation to what environmentalists refer to as “green traffic,” or a decarbonized road network. The country wants to be entirely electric by 2040.
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