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NEDA to make EVs even more affordable in the Philippines

The government agency is pushing for a zero-tariff policy for EVs.

Autodeal on Nov 29, 2022

Good news for those who are looking to buy an electric vehicle (EV) in the near future. The National Economic Development Authority (NEDA) is pushing to make these kinds of vehicles even more affordable in the future thanks to a new zero-tariff policy Executive Order (EO) according to a report by Autoindustriya.com.ph. In fact, the policy is just waiting for the president’s signature before it is put into action. The policy aims to make EVs more affordable to Filipinos and promote the EV industry in the country as well as curb the usage of fossil fuels. This will make electric vehicles such as the Nissan LEAF even more attainable

The government agency states that with this policy in place, as an added benefit it will also reduce vehicular pollution in the country and help counter climate change. The type of models that are affected by this policy are motorcycles, tricycles, scooters, passenger cars, and trucks, and even includes EV parts. This will make vehicles such as the Nissan LEAF, Kia EV6, BMW iX, and Ioniq 5 even more affordable in the country.

The EO will temporarily reduce the Most Favored Nation (MFN) tariff rates to zero percent for five years. Something to note is that this zero-tariff is good for five years on completely built-up units of certain EVs with the exception of hybrid-type vehicles.

Aside from addressing pollution issues and climate change, it will also help the Philippines be part of the value chain globally with the budding EV industry. The government agency also hopes that it will incentivize manufacturers to bring in new models and hopefully develop the local EV industry.

Once the policy has been signed and implemented, NEDA will be conducted after one year to see if it has an effect on the country’s economy and if this effect is positive. It will also check if the new zero-tariff policy has an effect on the EV industry. For now, it's a waiting game to see what will happen next as many brands and even customers who want to buy an EV stand to gain a lot if signed into law.